Get Ready for Making Tax Digital
As well as HB&O's free Cloud Accounting Essentials workshops, there's lots of advice and guidance to help you get ready for Making Tax Digital.
How do you sign up for MTD?
You will not be auto-enrolled into Making Tax Digital, therefore you must undertake a few steps in order for you to be able to submit your VAT returns.
In order to sign up for Making Tax Digital, you’ll need your Government Gateway user ID and password and the VAT number of the business that you’re signing up. Visit https://www.tax.service.gov.uk/vat-through-software/sign-up and follow the step by step instructions. HMRC will send you a confirmation email within 72 hours of signing up.
HMRC have provided further guidance on how to sign up for Making Tax Digital for VAT. Watch their video below or visit their help page here. Alternatively, contact our team for assistance in signing up.
If you submit your own returns, please make sure you register no later than two weeks before your first MTD-compliant return is due - but no sooner than two weeks after the last non MTD VAT return has been filed to avoid complications with pre-MTD returns.
For those businesses where HB&O submits VAT returns on your behalf, we will register you for MTD through our agent portal. This will result in an email being sent to you from HMRC asking you to verify your email address and accept electronic communications. Although we will then set you up for MTD, we would still encourage you to sign up for your own Business Tax Account.
How does MTD for VAT affect you?
From April 2019, if your business has a taxable turnover above £85,000, you'll have to keep digital VAT records and submit VAT returns digitally too.
If you have a taxable turnover below £85,000, you can still voluntarily join the service.
Making Tax Digital for VAT - What is compatible software?
You or your accountant needs to be able to submit VAT returns digitally using compatible software that draws information from your digital records and links directly to HMRC's system. If you don't currently keep your records digitally, you need to review your options and choose a solution that works for you and your business.
How can HB&O help?
We are working with a wide range of VAT-registered businesses to help them get ready for MTD and we'd love to help you too.
Contact our team on firstname.lastname@example.org