Are you prepared for the final stage of MTD for VAT?
Released On 17th Jan 2022
There is now only a short time left before the final stage of Making Tax Digital for VAT begins in April this year.
Under the upcoming phase, even the smallest VAT registered business will need to comply with the quarterly digital recording and reporting of VAT- including those below the £85,000 VAT threshold who are voluntarily registered.
So far hundreds and thousands of VAT registered businesses above the VAT threshold of £85,000 are complying with MTD, having invested time and money to bring their systems up to date with the compliance requirements.
Now many more businesses are likely to be caught out by the charge, which will require smaller firms to use the latest MTD compliant cloud accounting software.
HMRC compatible software
It's essential that you use the correct software to meet the new requirements. The software must be able to:
- Keep records in a digital form
- Preserve digital records in a digital form
- Create a VAT or tax return from the digital records held in functional compatible software and provide HMRC with this information digitally
- Provide HMRC with VAT and tax data voluntarily
- Receive information from HMRC via the API platform.
We can help you find online cloud accounting software that is suited to you and your business's needs.
Failure to comply
Given the scale of the change, there are concerns that some businesses may not be ready in time.
Unlike the initial launch of MTD, there will be no soft-landing period for this latest stage and businesses can expect to be fined or even investigated by HMRC for non-compliance.
We have already helped many businesses migrate to the latest cloud accounting technology in preparation for MTD, delivering many benefits beyond compliance.
Given the impending implementation of these new rules and the risks associated with not meeting them by April next year, we are ready and able to support businesses as they prepare for MTD.
Do you need help with MTD? Don’t leave it too late, speak to our team today.
