Making Tax Digital (MTD) Update

Making Tax Digital (MTD) - and update

HMRC are now preparing for their first compulsory batch of submissions under the new rules of Making Tax Digital (MTD) for VAT. The first returns requiring submission under the new rules will be the quarter ending 30th June 2019. These new rules for MTD require VAT returns to be submitted using a software package or a form of bridging software that links straight to HMRC.

You will therefore no longer be able to submit a VAT return via the old Government Gateway for any quarters beginning after 1st April 2019. These will have to be submitted via software directly.

For any clients that submit their own VAT return, you will need to make the switch over to the MTD process by following the instructions on the HMRC website; this will need to be done at least one week before your next return is due and at least three days after your last return has been submitted. Please note that once the switch has been made there is no going back!

For those clients who we submit returns on your behalf, we will handle the switch over to MTD for you as the Agent, and any recommendations for changes to the way book-keeping is handled will be discussed with your Account Manager if not already done so.

As a brief point for those making payments by direct debit, these will continue with no need to make any changes, but the reference that appears on your bank will now be slightly different to what it has been in the past.

A further useful tip concerns your VAT certificate. Under the old portal it was easy to obtain a digital copy of this online. Once the switch is made to the MTD portal this functionality for now appears to have disappeared. It’s useful therefore before making the switch to take a copy and keep safely filed.

Our own Cloud Accounting offering WebsterAccounts is now fully compliant with MTD – making it the oldest of all the solutions compliant with MTD.

If your have any concerns in connection with MTD please contact your account manager.