Making Tax Digital – What you need to know!

Making Tax Digital

As part of Making Tax Digital (MTD) plans to modernise our UK tax system, the Government is changing the way VAT registered businesses create and submit their VAT Returns.

As of April 2019, businesses with a taxable turnover above the VAT threshold of £85,000 are required to file their VAT returns electronically using accounting software like Sage, and are obligated to keep a digital record of their transactions.

Manual submission at the HMRC gateway for VAT will no longer be valid for most businesses.

What does it mean for businesses?

If your business is affected, the new VAT rules apply from 1 April 2019, and you must:

  • Ensure you have MTD for VAT compliant software.
  • Start maintaining digital business records for the purposes of VAT.
  • Sign up with HMRC for MTD for VAT.
  • Start submitting your VAT Return through your compliant software.

What do I need to do?

If you currently subscribe to Sage 50 Accounts and have v24.2 installed, this is MTD ready.

If you’re still using Sage 50 Accounts, it’s quick and simple to switch your contract to Sage 50cloud Accounts, we would be only too happy to help you with this. Email us at info@sageaccountssolutions.co.uk and we can give you a quotation based on your needs.

HMRC will soon be running an open pilot later this year for MTD for VAT. Once you have your MTD compliant software, we recommend you sign up early. This gives you time to make any required changes to your VAT processes and get used to the new system before it’s mandatory.

 

 

 

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