VAT-registered businesses the first to go through MTD
Around a million VAT-registered businesses will need to comply with new digital reporting rules from April 2019. If you’re one of them, you’ll need to make sure you’re prepared. And creative businesses in the London area are no exception.
Making Tax Digital is a government initiative to streamline tax and make it easier for both individuals and businesses to keep on top of their finances, automate the processes online and get their tax right. The first wave will go through this April with VAT-registered businesses. There’s lots to do and not much time left to prepare.
Here are the 5 most important steps you should take before the deadline…
Check you’re included
Overall, the changes apply to a wide range of taxpayers, including most businesses, self-employed professionals, and landlords. There will be limited exemptions for very small businesses (£10,000 has been touted but not yet confirmed). While those who are unable to engage digitally may also be excluded. This means those who are unable to use digital a method for religious reasons, insolvency or for practical reasons of age or disability.
The MTD for VAT requirements, will apply to all VAT registered businesses and organisations with turnover above the VAT threshold of £85,000.
Review your current system
You may already be using a compatible software and might only have to tweak your system. However, this is a great opportunity to iron out any problems there may be with your current accounting process for VAT.
Choose your software
Compatible software is a requirement. At Artisan Accounts we are “Xero MTD” approved and Xero is an HMRC-recognised VAT software provider, making it an excellent choice. But other software is available. We’ve written a blog on how to choose the right software for your business here.
Join the pilot
Pilots are open for VAT and income tax, so there is still a chance to get used to the new process before you’re required to use it. However, businesses shouldn’t consider signing up until they are using functional compatible software.
It’s best to get advice from an expert who can answer your questions quickly and smooth over the process.
If you’re worried about meeting the deadline for MTD, or just need some extra advice, don’t hesitate to get in touch at +44 (0)20 8819 8762 or email us for the attention of our MTD Guru, Tracey Grove.
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