We are delighted to announce we have now successfully submitted our first VAT MTD live submissions on behalf of a few of our clients who joined our pilot early ahead of the 1st April 2019 deadline. During this time, we have been able to test the MTD sign up process and software for our clients to ensure we are fully ready to answer all their questions and advise them of their best course of action to be MTD compliant.
Here’s a reminder of what MTD is.
It will introduce a requirement for all businesses with a taxable turnover above the VAT registration threshold (£85,000) to keep digital records. For businesses with a turnover below the threshold, it´s not compulsory, but they may also opt to file their VAT returns through MTD.
How will it work?
Under MTD, the following information must be kept using functional compatible software approved by HMRC:
- Name and address of the VAT registered person
- Address of the VAT registered person’s principal place of business
- The VAT registration number
- The VAT accounting schemes
- The date and value of each supply made, and the type of VAT charged
- The date and value of each supply received, plus the amount of any input tax that needs to be recovered
- The VAT exclusive value of each of the following outputs: standard rated, reduced rated, zero-rated, exempt or outside the scope.
How can my company prepare?
If you are a Drummond Laurie client, we will be in touch with you very soon to discuss your specific needs and advise you of how to progress using our knowledge from the pilot.
Businesses will have to submit their VAT returns under MTD for VAT quarters beginning April 2019. The first step to ensuring MTD compliance is to ensure your accounting package will be deemed ‘functional compatible software’ for MTD purposes.
If you have concerns around this or need some assistance, we can help, email email@example.com or call 01324 441250 as soon as possible to discuss your options.