Next 1 April will see a major change in the way that businesses have to file their VAT Returns. 2019 is the year VAT goes digital so it’s time to get prepared, says Richard Clarkson of HPH Accountants LLP.
1 April 2019 is looming fast and that means a big change in the way in which you will have to account for VAT.
From that date, any VAT-registered individual or business above the VAT threshold will have to comply with the new Making Tax Digital (MTD) regime. There may be some leeway for people who have registered for VAT voluntarily, but anyone else will have to follow the new rules for filing their VAT returns. MTD for VAT focuses on three key requirements:
- Digital record keeping – storage of all transactions in electronic form
- Digital links – have a digital link between the final numbers and source data
- Digital submissions - all submissions must be made using appropriate software via HMRC’s new gateway
It’s important you’re fully compliant and up and running by the deadline, so now’s the time to talk to us at HPH. We’ll be able to help you select the most appropriate software, such as QuickBooks or Xero.
If you’re currently using Excel spreadsheets or keeping paper-based book-keeping records though, there’s no doubt the new system may come as a big change. So, the sooner you can make the transition, the better.
The information contained within the above blog article is for general information purposes and may be time critical; it does not constitute professional advice. We accept no responsibility for any loss which may arise from reliance on the information contained in the blog article. Always seek professional advice before acting.