Are you ready for MTD? – What is MTD I hear you cry!

HMRC’s new regulation around digital taxation comes into force for businesses with a turnover of £85,000 or more on 

1 April 2019.

 

According to the Office of National Statistics, there were 2,669,440 VAT-registered businesses in the UK in March 2018. 

That's a lot of unprepared businesses!

Businesses must ensure they are using MTD-compatible software to file their returns.

To be compatible it must include an Application Programme Interface (API), and HMRC are not providing any software for this.

What is an API I hear you ask? Me too!

An API creates a link between a business’s accounting software and HMRC’s systems. 

Businesses will be able to submit their figures to HMRC via this accounting software.

 "With just six months to go before the rules come into force, there’s a worrying number of VAT-registered business that are completely unaware of the changes. And many of those that are aware have an awful lot of work to do to get ready” - John Forth, VAT partner at RSM 

 

“MTD for VAT will affect the two groups most who have been filing manually: mid and large-sized companies with complex or Group VAT returns; and the many micro-businesses relying on Microsoft Excel or manual records.” - Richard Asquith, global VP of indirect tax at Avalara

According to HMRC, 12 percent of VAT-registered businesses still file manually today.

What happens if I ignore MTD you ask?

• Blocked from filing returns 

• Missed VAT returns 

• Investigations triggered

• Fines

 

For the sake of a few hours setting up and training on Quick Books Online or Xero – is it really worth it? 

I can provide both for you at Purple Bookkeeping and also peace of mind that you will be ready when many others will not be. 

Contact me today at www.purplebookkeeping.com or call me on 07941 700834

Source: Accountancy Age