There’s been a lot of shouting about Making Tax Digital (MTD) kicking off on 1stApril, with HMRC trying to ensure everyone who needs to know, knows. Equally though, we’ve heard stories of people who are still using journal books saying “it doesn’t apply to us as we’ve not had a letter”. So maybe you’re one of the people that is unsure or doesn’t think it applies to them?
Put simply, if you are a VAT registered business with a taxable turnover above the VAT threshold, you are required to use the MTD service from 1stApril 2019. There are a few small exceptions that can be found here but for the most part people must be using software to keep their records in a digital form and file their VAT returns using software. Importantly, copying and pasting information from one location to another features in the list of things that are NOT compliant when it comes to the final figures (so you can copy and paste during normal operations but you can’t copy and paste the figures to be submitted around, they have to transfer electronically).
There’s a lot of information out there, not always in the clearest form, so if you need any help or advise please feel free to contact us, we’re here to help!