In less than a year all businesses that file VAT returns will have to file these online or through reliable accountancy software.
From April 2019, VAT registered businesses with turnover above the VAT threshold (currently £85,000) will have to:
• Keep their records digitally for VAT purposes
• Submit their VAT return information to HMRC through Making Tax Digital compatible software
This means that businesses within the scope of MTD for VAT will have to use accounting software to record all VAT invoices and receipts and will no longer be able to submit their VAT return manually via the HMRC Gateway.
At Moore (South) LLP we have been talking to our clients and offering support for the Governments making tax digital programme ahead of the 2019 deadline.
It has been made clear to us from speaking with our clients that the Government have not communicated very clearly the deadlines and reasoning behind making tax digital, and because of this, businesses are feeling unprepared.
As an accountancy firm, we are up to speed with the Governments making tax digital programme and are able to provide our clients with fully compliant digital software. Such as QuickBooks Xero & Sage.
Online filing of VAT returns is the very beginning of a much larger digitisation programme.
But for now, to help clients prepare we have put together a quick guide:
- If your turnover exceeds the VAT threshold of £85,000 you will no longer be able to file your VAT returns via the HMRC portal. They will need to be filed via Making Tax Digital compliant software.
- The information VAT returns need to include is not changing.
- And do not leave until April 2019.
Across each of our South offices we have a number of cloud accounting fact sheets. If you would like to receive one of these fact-sheets please call your local Moore (South) LLP office.