Since mainstream Making Tax Digital (MTD) was delayed, time has passed quickly and many businesses thoughts have passed to more pleasant things like tax returns and GDPR!
But MTD is back on the horizon and it will impact on VAT shortly.
What changes does MTD for VAT bring in?
- VAT returns will be compiled by pulling data from digital records
- VAT returns will be sent to HMRC via API-enabled products and not through VAT portal.
What won’t change?
- The VAT return will still be a nine box form
- The VAT return frequency and payment deadlines
- The eligibility for VAT Special Schemes.
What is the timetable?
|Technical consultation on the regulations closed
|VAT pilot –Live testing of MTD begins
|Businesses trading above the VAT threshold are mandated to use MTD
So what does this mean?
MTD for VAT is literally less than one year away – you should be lanning ahead by considering:
- what software will be used?
- does this require a change from the current software?
- who will prepare/submit the VAT returns?
- does this require further software training?
The scope for disruption caused by the shift to fully digital record keeping should not be underestimated. By addressing these issues now you will be better prepared when other parts of MTD are implemented.
Article from ACCA In Practice