Making Tax Digital

 

What is making Tax Digital? Is my business affected?

Making Tax Digital (MTD) is a government initiative which came into effect for VAT submissions from 1st April 2019.

MTD is designed to transform the UK tax system and make it easier for businesses to maintain their records, keep them accurately and report them to HMRC in the form of a return.

The first phase for MTD is for VAT, for those businesses with annual sales of the VAT threshold of £85,000 or above. As HMRC are retiring their free VAT submission gateway, VAT registered businesses will no longer be able to log into the portal and submit their VAT returns, businesses affected will now have to use a recognised digital solution for their bookkeeping, VAT and submissions.

All of our current subscribers are already able to submit VAT returns to HMRC through our software directly to their gateway. However, as this is changing, to ensure we are recognised by HMRC to enable users to submit their VAT returns to their new gateway, we have been working closely with them and developing our solution for MTD and has now been released.

If you are a subscriber to the Startup Kit+VAT or Business Suite, the new VAT component has been issued as part of an update to your existing product.

If you would like further information regarding MTD for VAT and the guidelines, please see these resources:

https://www.gov.uk/guidance/software-for-sending-income-tax-updates#VAT

https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

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-ready

If you are a user of our software and are unsure of if, or how the changes will affect you. Please email support@accountz.com and we'd be happy answer your questions.