UK BUSINESSES REGISTERED FOR VAT, ARE YOU READY FOR THE CHANGES IN APRIL 2019?
BY FLEUR LEWIS, BISHOP FLEMING PARTNER
With a relatively few short months to go before VAT registered businesses in the UK will have to keep digital records and use approved computer software to file their VAT returns online, it is time to prepare for the digital changeover writes Fleur Lewis from Bishop Fleming.
From 1 April 2019, UK VAT registered businesses with sales above £85,000 will have to keep electronic accounting records and submit VAT returns using software approved by HMRC.
Affected businesses will no longer be able to keep manual records in any part of their accounting system. For those who use software and spreadsheets, digital links must be in place to transfer data between each function.
VAT registered entities need to start getting their accounting records in a digital form to avoid panic later on as the deadline approaches.
Businesses need to contact their accountants and software suppliers
to find out when they will receive an upgrade to deal with the changes.
The tax office is currently undertaking a pilot exercise with a number of volunteer businesses and software suppliers and are busy working to ensure they have the right updates in place.
The following steps can help preparations for the deadline:
- Read up on how Making VAT Digital will affect your business and what you need to do in advance of the date
- Check with your software supplier that your software is up to date or will be by April 1 2019.
- If you use a spreadsheet and wish to carry on doing so, you will need to add on an API enabled spreadsheet.
- Convert your record keeping to a digital format and make sure that your VAT returns can be created from those digital records.
- Some entities will not have to comply with digital accounting where they fall within one of the exclusions, but these are limited and rely on the discretion of the tax office. For example, some charities and academies may be exempt.
More information is available from the Government web site at
https://bit.ly/2xjRbaB.
The Report • September 2018 • Issue 85 | 43
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