MaKIng tax dIgItal for vat
MaKIng tax dIgItal (Mtd) IS Part of thE govErnMEnt’S Plan to MaKE It EaSIEr for BUSInESSES to Stay on toP of thEIr day-to-day accoUntS.
from april 2019 all vat registered businesses with turnover above the vat threshold will be required to maintain digital records and will need to send their vat information to hMrc using third party commercial software. hMrc’s online portal will remain available to all other businesses that complete a vat return but have turnover below the vat threshold.
SoftWarE rEQUIrEMEntS commercial software must be able
to; 1) Keep records in a digital form; 2) Preserve digital records in a digital form; 3) create a vat return from the digital records; 4) Provide hMrc with vat data on a voluntary basis; 5) receive information from hMrc via the aPI (application programme interfaces) platform. this will allow hMrc to send ‘nudges’ to the business/agent.
SPrEadShEEtS the use of spreadsheets will be permitted although they will need to be combined with third-party commercial software, using aPIs, to ensure a seamless flow of data from the business to hMrc (and vice versa). But note that the long-term plan is for the numbers to flow directly from accounting software and software houses are gearing up for this.
Chartered Accountants & Registered Auditors
+44 (0) 28 90325050 |
www.muldoon-accountants.co.uk 52 - PharMacy In focUS
digital record-keeping requirements hMrc has confirmed that the requirement to keep digital records does not mean that businesses will have to make and store invoices and receipts digitally. Businesses can continue to keep documents in paper form if they prefer, although transactions will need to be stored digitally.
nExt StEPS Undoubtedly, Mtd presents challenges for business owners and software developers alike. a review of your current accounting / bookkeeping software provider should be undertaken to ensure that your current record keeping and software is compatible (or has the potential to be compatible) with the requirements for Mtd.
If there is anything in this article that affects you or somebody you know please speak to Steven McVitty for independent professional advice.
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