Making Tax Digital – Are You Ready?
Making Tax Digital (MTD) is now live and if you meet the criteria for mandatory submission of VAT returns using MTD, then you should have received a letter from HMRC confirming this. If you have not received a letter, this is not an excuse for non compliance.
By now you should have checked that you have suitable accounting software or ‘bridging’ software to enable you to file your VAT returns using MTD.
If not, please speak to us.
You must register with HMRC to use MTD, it does not happen automatically. It is important to consider when the appropriate time to register is. For example, if your VAT quarters are Mar/June/Sep/Dec then your first MTD VAT return will be for the quarter ended June 2019. You should not register until your March 2019 VAT return has been submitted using the old system and if you pay your VAT be direct debit you need to leave 15 days before any payment is due. It is probably best to register in the middle of the month.
Do you know how and when to register for MTD?
If not, please speak to us and we will guide you.
A number of organisation are deferred for MTD until October 2019 and in some cases it may be possible to claim exemption. An exemption must be requested by contacting HMRC by phone or in writing. Remember that if your taxable turnover is below £85,000 per annum, then you are automatically exempt.
If you think you may qualify for deferral or exemption, please contact us.
The existing penalties for late filing of VAT returns and late payment of VAT will continue to apply. A new penalty system is currently the subject of a consultation but has not yet been agreed. There is a penalty for filing VAT using an incorrect method so don’t be complacent.
Are you ready?
For more information or to discuss your circumstances, please contact the Making Tax Digital Taxperts.