Start planning now to ensure you meet the deferred MTD deadline
VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital (MTD) initiative to keep records digitally and use software to submit their VAT returns for periods starting on 1 April 2019.
We appreciate it can take a while to adjust to new systems, but MTD will make your tax administration more efficient and accurate. If you're having issues with the changeover, get in touch with our friendly team.
Whatever the problem, we'll have dealt with a similar one already, and we can provide the expertise and reassurance you need.
Following initial feedback, HMRC announced an extension to the deadline for a number of more complex business types. If your business is one of the following, you have until 1st October 2019 to prepare for MTD:
- 'Not for profit' organisations that are not companies (this includes some charities)
- VAT divisions and VAT groups
- Public sector entities that are required to provide additional information alongside their VAT return (such as Government departments and NHS Trusts)
- Local authorities and public corporations
- Traders based overseas
- Those required to make payments on account
- Annual accounting scheme users
October may seem like a long way off at the moment, but you need to start preparing for the changeover now if you haven't already begun. It's particularly important to ensure that you choose the most relevant MTD-compatible software. HMRC has recently updated its advice on this, with separate pages for MTD for VAT and for income tax.
Our clients cover the whole spectrum of business types, and we would be happy to advise you about the best fit for your company. So if your company has deferred MTD, and you haven't already done so, make a start on your preparations now. If you have questions about any aspect of the process, contact our team for expert advice.