Making VAT Digital
Making VAT Digital is the name of the UK Government’s initiative to make VAT registered businesses with taxable turnover above the VAT registration threshold (currently £85,000) keep their records digitally (for VAT purposes only) and submit their VAT return information to HMRC digitally through ‘MTD functional compatible software’.
- Business voluntarily register for VAT but with taxable turnover under the VAT registration threshold will not be subject to MTD for VAT.
- Once you are in MTD for VAT it will continue to apply even if the taxable turnover of the business subsequently falls beneath the VAT registration threshold. The requirement of MTD for VAT only ceases to apply if you deregister from VAT.
- MTD for VAT will apply to VAT return periods starting on or after 1 April 2019, which isn’t far away!
- The return will still look the same as it previously has done, but behind the figures will be supplementary information providing a summary to HMRC of the costs incurred, such as totals for motor expenses, rent and rates, etc.
So what does this mean for you?
Very simply it means you will probably need to move your financial accounting system onto a cloud accounting system, such as QuickBooks Online.
Wheelers specialises in online accounting systems and has the expertise to help you make a painless transition to the new regime.
Contact us today to learn more about how we can help you.