Making Tax Digital (MTD) – VAT Regulations – Are you Compliant?10th July 2018 | Posted in: Business Tax, VAT
The headline name of MTD is focusing people’s minds on personal tax and self-assessment. However, the first hurdle that businesses need to get over relates to VAT and comes in from 1 April 2019, in that:
‘VAT records (the electronic account) must be preserved using MTD functional compatible software unless the trade is exempt from the MTD regime.’
One of the many questions arising from this is what is MTD functional compatible software?
The main purpose of the regulations is that the VAT figures can be processed directly from your records to HMRC without the process of calculating then re-entering through a gateway system.
In broad terms, if you have a cloud system or SAGE (you may need to upgrade to latest version), then you should be compliant and there is no need to worry about your situation.
If you are still operating a manual cash book or excel schedules then you need to have a review of your position and this should be carried out soon.
At Johnston Smillie we are spending more time than ever reviewing, assisting and advising on the most appropriate systems for our clients.
The accounting software options which include SAGE, XERO, Quickbooks Online and Freeagent along with the add-ons that link to these systems like Auto Entry or Futrli make processing quicker, more efficient and allow planning for the future rather than looking back. Therefore, the MTD regulations may assist your business rather than being a chore.
If you would like more information on the systems that are compliant or would like a review of your current bookkeeping position, then please contact on 0131 317 7377 or firstname.lastname@example.org