Making Tax Digital (MTD)
Making Tax Digital (MTD) with Glen C Rodger in Newcastle.
The first milestone for Making TAX Digital (MTD) is 1 April 2019 when it goes live for VAT purposes. This is the start of a Government initiative to encourage all businesses to keep digital accounts, hence the term Making Tax Digital (MTD). The first step is compulsory for all VAT Registered businesses with an annual turnover in excess of £85,000.
Remember that Making Tax Digital (MTD) for VAT isn’t just about digitally filing VAT Returns, it is also about keeping and preserving records in a digital format.
Making Tax Digital (MTD) for VAT will apply for your first VAT period that starts on or after 1 April 2019. Therefore, as your quarterly filing date is 31 March 2019, your first VAT quarter to be filed under Making Tax Digital (MTD) for VAT will occur for the period 1 April 2019 to 30 June 2019 due for filing by 7 August 2019.
You are not required to provide any more information to HMRC as part of Making Tax Digital (MTD). You will still be required to provide the same 9 boxes of information. However, you will be required to provide the information digitally via your Making Tax Digital (MTD) - compatible software based on the digital records you have been keeping and preserving.
During the first 12 months of Making Tax Digital (MTD), HMRC will accept copy and paste of data as a digital link. Even though this is done solely by a computer, it is not automated and so is not considered a digital link as defined by the Making Tax Digital (MTD) for VAT regulations. This is the case even if you are copying and pasting within the same software programme.
The first 12 month period is described as a “soft landing period” and that is only to allow business time to update legacy systems and transfer from hand written to computerised records.
Glen C Rodger are here in Newcastle to help ensure a smooth transition to Making Tax Digital (MTD). Please contact our Newcastle office if you wish to discuss anything further on the matter and how we can help. We have the knowledge and software in house to help you be fully compliant.