HMRC have modernised the VAT System – Is your business ready?
HMRC are modernising their VAT system – Are you ready?
For accounting periods starting on or after 1st April 2019, VAT registered businesses with an annual taxable turnover above the VAT threshold of £85,000 must:
- Keep digital records for all VAT transactions
- Use compatible software to submit VAT returns to HMRC
This is called making tax digital. If your business is VAT registered and has an annual taxable turnover above the VAT threshold, this means you must act now to get ready for the change. Taxable turnover is the total value of everything you sell that is not exempt from VAT.
You need to use software systems such as Xero, Sage, Quick Books etc to put your VAT return through to HMRC.
What you need to do:
- Talk to your accountant, if you have one, about signing up to making tax digital
- Go to www.gov.uk, search for MTD action and click on the first link to sign up
- Check your software is ready for making tax digital
Sign up now to be certain that your software meets the new requirements. Once your software is set up, you can send your VAT returns to HMRC with the click of a button.
Help and Guidance is available when you follow step 2 above. This includes short youtube videos and links to the eays you contact HMRC.