Making Tax Digitial - VAT

HMRC are now making it mandatory for any VAT registered business with a taxable turnover above the VAT registration threshold (currently £85,000) to keep digital VAT business records and send returns using Making Tax Digital (MTD)-compatible software.

What You Need to Know

1. Deadline 

For the majority of businesses the deadline for being MTD compliant is the accounting period starting on or after 1st April 2019.

2. Who This Applies To

Any VAT registered business with a taxable turnover above the VAT registration threshold (currently £85,000).

If your business has a taxable turnover below the VAT threshold you can still sign up for MTD on a voluntary basis.

What You Need to Do

3. Talk to your accountant or talk to us at Cunninghams about signing you up to Making Tax Digital

Or:

go to www.gov.uk and search for 'MTD Now' and click on the link

4. MTD compatible Software 
You will need to use the appropriate MTD compatible software. You may already use accounting software, like Xero, which we use here at Cunninghams which is also MTD Compatible. If you are unsure of which package would be suitable - click the link below for the HMRC's list.

 VAT compatible software - available now

Then Start using the software (if you don't already) to:

• Keep Digital records for all VAT transactions
• Submit VAT returns to HMRC digitally

For full details on Making Tax Digital please go to:

 Making Tax Digital: How Vat Businesses and other VAT entities can get ready - GOV.UK

Be Prepared

It is always best to be prepared - Cunninghams can guide or advise you on getting ready for MTD or we can compile and send your digital VAT returns for you, as part of our accounting services. Either way there is no need to panic. We can work with you towards making your company Making Tax Digital ready, well before the April 2019 deadline.

If you need help or advice, please call us on 01737 237 517 or email us on info@cunninghamsltd.co.uk