Myths of MTDApril 18 2019, 0 Comments
Making Tax Digital (MTD)
You may have heard about it from HMRC or from adverts in the media or from your accountant. I do not profess to being an expert on MTD but I have been asked a lot of questions from our customers and feel that there is a need to bust some of the myths….
I have to register for MTD if I am VAT registered
NO, only if your previous rolling 12 months turnover is over the VAT registered threshold (currently £85K) do you have to move to MTD. Please keep checking this with HMRC in case the rules change.
All purchase receipts have to be stored digitally
NO, at the moment (I can’t guess the future), there is no requirement for receipts to be photographed and stored electronically this is just a service that some online software providers offer.
Emailed supplier invoices need to be imported into my accounting program
NO, these are usually pdf invoices which should be printed and then entered as normal into your accounting program. Paper receipts should be filed or as above stored electronically.
I have already been submitting my VAT returns via my accounting program therefore I do not have to do anything new
NO, if you meet the requirements for MTD then you will have to register with HMRC and submit your returns via their new method.
MTD means that every transaction is sent to HMRC each quarter
NO, HMRC will still only receive box 1 to 9 figures, BUT, MTD requires you keep your records digitally.
Is there any software for MTD out there that doesn’t cost the earth?
YES, you can subscribe to either the Startup Kit +VAT or Business Suite from as little as £12 ex VAT per month…….. Oh, and we don’t tie you into a contract!
Your data, on your computer and HMRC MTD recognised.
Useful links: https://www.gov.uk/government/publications/making-tax-digital-how-vat-businesses-and-other-vat-entities-can-get-ready/making-tax-digital-how-vat-businesses-and-other-vat-entities-can-get-readyTake a trial of our software and e-mail firstname.lastname@example.org