Making Tax Digital
Making Tax Digital
As Spring is in the air at last, we thought we’d do a very small introduction to MTD for any businesses who are still getting their heads around what it is and what to do next. No fear we can help, but first of all let’s have a quick look at what MTD is all about.
What is it?
Making Tax Digital, MTD, has been bandied around for a while, but what does it mean for VAT registered businesses? In a tiny nutshell it means that from 1st April 2019 all businesses above the VAT threshold (£85,000 18/19 and 19/20) will be required by law (that bit’s important) to use MTD to keep VAT records digitally and to use government compatible software to submit their VAT returns. Sadly, your old online VAT submission routines won’t work after 1st April 2019 – unless you’re already locked and loaded with the right software of course.
Why?
Because the government says so - it’s designed to make VAT return submissions much easier and more transparent. The requirement is part of the Finance (No. 2) Act 2017 with added legislation in February 2018 and it all comes in force from April 2019. If you want to read more here’s the legal bit and then there’s more detailed guidance in VAT Notice 700/22.
Are you a shoe-boxer?
Do you have a shoebox full of receipts and an excel spreadsheet and just want to get on with your business? Then come to us – we are offering a ‘shoebox and spreadsheet armistice’ in April; you can surrender those to us and we will work with you to make sense of it all! We can offer your company a comprehensive package based on your size and business needs, or you can cherry pick say just payroll. Our business packs and pricing is transparent on our website, or we can tailor something specific for your needs.
How can Papertrail help with MTD?
Here’s a happy thought for you. Whether you’re a shoe-boxer or not, then here at Paper Trail Bookkeeping we can work with you to help you achieve VAT digitisation so we can submit your VAT returns online with MTD compatible software...Government’s happy and you’re relieved. We use all sorts of software (Sage, Quickbooks, Xero etc) and we will help you choose the best fit for your business or see what needs to be done to make your current software MTD compatible with a bridging solution. If you want to change accountancy programmes we can also do that with you too. In fact we have some great discounts on software in the first quarter of 19/20 so get in touch for our pricing offers.
The last word on MTD - so far it’s only VAT that has been digitised but we’re sure that by April 2020 there will be other taxes which will follow the same path. Bookmark us and we’ll keep you updated.