Am I ready to make Making Tax Digital returns?
I am a VAT registered business and I am now using an online software package; does this mean that I am ready to make Making Tax Digital returns and do I start this from April?
It sounds like you are aware of the upcoming changes, however to reconfirm, Making Tax Digital (MTD) is a government initiative that will see the administration and submission of taxes being carried out online. H M Revenue & Customs (HMRC) believe that a digital and more modern approach to tax will allow businesses to get their taxes right more easily.
The fact that you are using some sort of online software such as Sage or Xero will mean that you certainly now have the tools to make these returns when the time comes.
The first return that you will have to submit under the new MTD regime will be your first VAT return with a quarter commencing on or after 1 April 2019 i.e. quarter ended 30 June 2019.
There will also be a further step to enable you to submit MTD returns which will require you to log in to HMRC’s online services and tick a box to register with HMRC that you are now going to be making MTD submissions.
Once this has been done you can change your software settings to file an MTD return rather than a normal VAT return. In order to find these settings you should consult with your software provider.
If you would like to arrange a free consultation to look at the packages available or require any other assistance in relation to Making Tax Digital, please contact Gemma Newstead on 01424 720222 or email her at [email protected]