Everything you need to know about Making Tax Digital for VAT
As the VAT deadline approaches, accountants must become MTD experts, ready to help their clients comply with the new tax system and stay abreast of updates
With only eight months to go until the Making Tax Digital for VAT deadline, most businesses above the £85,000 threshold are underway with integrating the new digital tax system into their processes.
After deciding to delay the MTD for VAT deadline back in July last year, the government finally set a new deadline of April 2019. All other taxes will be April 2020 at the earliest.
Since the new deadline was announced, businesses above the VAT threshold have been getting ready for HMRC’s new system at various paces. All customers, accountants, and bookkeepers can now choose to start their MTD digital submissions early by taking part in the public beta.
It is highly advised that businesses who have not started the transition do so now before the busy tax year starts up again in September/October and other commitments get in the way of a smooth move over to the new way of doing things.
What role does an accountant have to play in MTD? They must become experts. Clients will look to them to explain how it will work, recommend software, help them onboard the new system, and to stay abreast of any changes and updates the government might make.
The above infographic outlines the key elements of MTD and provides a detailed timeline, including the dates you need to be aware of.
To read more about how you can be ready for MTD as an accountant, including what software solutions are available, visit the Making Tax Digital hub.
