Making Tax Digital for VAT - deadline approaches
Making Tax Digital for VAT has been set up by HMRC to make calculating and submitting VAT returns quicker, easier and more transparent.
HMRC estimate that in 2016-17, there was a tax gap of around £33bn, the tax gap is the difference between the amount that should be paid to HMRC and the amount that is received. Of this amount, £11.7bn related to VAT.
From 1 April 2019, it will be mandatory for all companies that are VAT registered with over £85,000 in taxable turnover, to submit VAT returns through compatible software.
What do you need to do?
If you are currently using software, you will need to ensure that this is MTD compliant.
If you are not using any kind of software but using a manual cashbook or excel for example, then you will need to move to compliant software for your VAT period starting on or after 1 April 2019.
How can Simpson Wood help?
Simpson Wood is now offering a cloud-based solution in the form of Xero, with a number of clients who are now not only submitting MTD returns through the software but also reaping the benefits of reduced processing time.
If you would like to know more about Xero or would like help in confirming your current software is MTD compliant, please get in touch with our MTD team.