VAT registered businesses with a taxable turnover above the VAT threshold must be compliant with Making Tax Digital for VAT periods starting on or after 1st April 2019.
After your last non-MTD VAT return has been submitted you will need to ensure that you are compliant by following the below steps:
- Ensure that you are using MTD compatible software e.g. Sage Cloud/Sage 50/Xero/Quickbooks (if using Sage 50, you need to ensure you are using an up to date compatible version). You can check your software is compatible here.
- Register for MTD (if we prepare your bookkeeping we will do this for you). You can do this here.
- Once HMRC have accepted this registration by way of email (usually within 72 hrs), you then need to switch on MTD in your accounting software. Guides on how to do this can be found below:
For a full overview of MTD click here.
One key point to note is that retail scheme users must post sales based on daily gross takings rather than just posting these monthly etc. They have also now confirmed that it is acceptable to post purchases from supplier statements rather than each individual invoice.
If you have any queries or wish to discuss any of the above, please do not hesitate to contact us. If you need to start using accounting software, please get in touch and we can arrange a meeting to discuss setting this up for you and providing appropriate training.