Getting to the bottom of Making Tax Digital

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

 

Check back over the next few weeks as we release more in our video series explaining the finer points of Making Tax Digital and making it easier for you to help clients prepare. Our upcoming videos will cover:

  • Moving your manual clients to the cloud.
  • Advisory services and what’s next for MTD.

Related Articles

MTD: Guide for accountants

Making Tax Digital MTD: Guide for accountants

3w IRIS | Sponsored
Only 57 percent of businesses are ready for Making Tax Digital deadline

Making Tax Digital Only 57 percent of businesses are ready for Making Tax Digital deadline

1m Beth McLoughlin, Managing Editor
Making Tax Digital: The importance of APIs

Making Tax Digital Making Tax Digital: The importance of APIs

1m Rob Wilcock, Product Manager, Taxfiler
Making Tax Digital can be a game-changer for all

Making Tax Digital Making Tax Digital can be a game-changer for all

1m Carl Reader, Chairman, d&t
QuickBooks releases MTD pilots and tools to make the transition easy

Making Tax Digital QuickBooks releases MTD pilots and tools to make the transition easy

2m Beth McLoughlin, Managing Editor
The top five tips and tricks to completing an MTD VAT filing

Making Tax Digital The top five tips and tricks to completing an MTD VAT filing

2m Shaun Shirazian
Digitalisation touches every aspect of our lives – let’s embrace it

Making Tax Digital Digitalisation touches every aspect of our lives – let’s embrace it

3m Alex Davis
MTD: Two thirds of practice clients still rely on spreadsheets

Making Tax Digital MTD: Two thirds of practice clients still rely on spreadsheets

3m Beth McLoughlin, Managing Editor