Do you need to be MTD ready for 1 April 2019?
26th July 2018
If you are a VAT registered business with a turnover above £85,000 you need to start considering your transition plans in order to comply with MTD reporting for VAT by 1 April 2019.
- It is possible that you may need to consider the possibility of a digital exclusion exemption.
- If you currently use accounting software it is possible that it will need upgrading.
- If you are considering acquiring new accounting software or you wish to consider joining the MTD pilot, please discuss this with us first before you take any further actions.
- If you presently maintain records on a spreadsheet you will need to acquire software which will allow returns and updates to be made directly from the spreadsheets. This can be time consuming and many businesses are considering outsourcing this work. Engaging the services of your accountant to assist with this new MTD process may have many business benefits.
- If you currently maintain records on paper your processes will need to change. You will need to provide records to us promptly after each quarter-end and engage us to do the bookkeeping and quarterly reporting or acquire and use appropriate software.
MTD for Income Tax (self-employed, partnerships, trusts and landlords who compete self-assessment tax returns) is expected to become mandatory for income tax reporting, but not before 2020. Pilots of MTD for income tax started on a small scale in April 2017 and will be rolled out to all businesses who wish to participate in the coming months
The timings for MTD for corporation tax have yet to be confirmed but it will not become mandatory before April 2020.
If you wish to discuss the forthcoming changes for MTD and VAT please speak to your usual ABG contact or contact to our specialist MTD team via our main switchboard.