The first deadline for Making Tax Digital (MTD) quarterly VAT submission was on 7th August where you needed to file your VAT submission through MTD compatible software, although HMRC have allowed some concessions.
If you are a VAT-registered business with a taxable turnover above £85,000 (this figure is valid for 2019), you need to keep digital VAT business records. Submissions need to be made via MTD compatible software.
If you are using a spreadsheet, you will require bridging software. Simply filing the spreadsheet or transferring the numbers manually is no longer an option as data cannot be rekeyed or manually cut and pasted. VAT guidance note 700/22 states: “Once data has been entered into software used to keep and maintain digital records, any further transfer, recapture or modification of that data must be done using digital links. Each piece of software must be digitally linked to other pieces of software to create the digital journey.”
If your business’ taxable turnover is below the VAT threshold, you can sign up for Making Tax Digital for VAT voluntarily.
For the majority of businesses need to comply with this regulation for VAT periods that started on or after 1st April 2019.
You can either file the VAT return yourself or your agent (accountant or bookkeeper) can file it for you.
If your business is eligible for VAT special schemes, you can also file via the MTD software.
Deadlines for VAT submissions remain the same and you can still make corrections to your VAT return in the following quarter.
And if a business does not comply with MTD for VAT?
If a business fails to comply with the new system, they will attract points and penalties according to the government’s new penalties regime. Late submissions incur points depending on how late the filing is and how many filings have been submitted late; after four late submissions, a penalty is charged for each late submission.
How Alba Financial Accountants can help
We are able to help you with the whole VAT process, from registration to completing and submitting VAT returns. We can advise if VAT registration is necessary for your business and should de-registration be necessary, we can also undertake this for you.
With regards to Making Tax Digital, we can advise which software packages you can choose from for your needs and help with setting up your software.
If you have any further questions, please do not hesitate to contact us. You can email us at admin@alba.uk.com or call 01509 853779.