Getting to the bottom of Making Tax Digital
If you've still got lots of preparation to do for Making Tax Digital, you've come to the right place with our new video series
Welcome to our new Making Tax Digital video series, designed to ensure you are on track for the upcoming changes. Brought to you by Accountancy Age and Sage, and featuring HMRC.
If you have questions about the upcoming Making Tax Digital for VAT, you’ve come to the right place. What’s more, you’re not alone. Plenty of businesses have not yet started or are just about gearing up to start working towards compliance. There’s still time, especially if you arm yourself with everything you need to know.
As a quick refresher, before we share our instructional videos, we will go over what Making Tax Digital involves.
What is Making Tax Digital for VAT?
Making Tax Digital (MTD) for VAT is a new regulation brought in by the government which requires VAT-registered businesses with a taxable turnover above the VAT registration threshold, £85,000, to keep their records digitally and file VAT returns using software.
You might say that many businesses are already keeping digital records. The difference here is:
- The software must be capable of keeping the records specified in the regulations
- It must also be able to prepare VAT returns using the information maintained in those digital records
- And it has to be able to communicate with HMRC digitally via its Application Programming Interface (API) platform
Apart from some specific exemptions which can be found on the gov.uk website, businesses above the VAT threshold must be compliant with this new MTD regulation by 1 April 2019. HMRC have put in a soft-landing year whereby businesses that are not compliant will not be fined (as they would usually) because they recognise this may be a big change for some businesses. However, it is advisable that businesses prepare by 1 April, especially as MTD for other taxes will be on the horizon.
Agent Services Accounts
HMRC expert, Verna Gellvear, will share with you:
- What the new Agent Services Account is and why accountants and bookkeepers need one
- Who needs an Agent Services Account
- The 4 steps to setting up an Agent Services Account
- The potential challenges accountants and bookkeepers need to be aware of
- What accountants and bookkeepers need to do now
How to fast track your MTD plan
Our senior reporter, Lucy Skoulding, interviews Chris Downing, director of product management at Sage about getting ready for Making Tax Digital with only a month to go.
They cover:
- Who needs to be ready for MTD in April 2019.
- Is there still time for businesses to prepare for MTD if they haven’t even started yet?
- What key steps do accountants need to take to get their clients ready for MTD?
Advisory services and what’s next for MTD?
It’s easy to focus on the now with MTD on the approach, but what about planning for the future?
In this video, Chris Downing, director of product management at Sage, covers:
Resources & Whitepapers
Accounting Software The power of customisation in accounting systems
- What accountants should focus on after completing MTD preparation with their clients
- How can accountants become a trusted adviser on MTD?