Keep up, Keep in touch – don’t panic! It is not too late…
For guidance on how to submit your VAT through the new Making Tax Digital portal using the KEYPrime Accounts range, please click here! Or watch our new video below.
WHAT IS MTD?
Making Tax Digital (MTD) is an HMRC initiative designed to make sure the UK tax system is effective, efficient and easier for taxpayers. Talk to us, your farm secretary and your accountant about what the plans mean for your business records.
WHEN DOES IT HAPPEN?
MTD for VAT began in April. Nearly all VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns from April 2019 onward using compatible software. Those with a smaller turnover will have to follow suit but HMRC is encouraging them to do so voluntarily to take advantage of the benefits of digital recording including reducing error and improving business planning.
WHERE ARE WE NOW?
Many Landmark clients applied and were accepted to test the scheme and are now regularly doing their VAT returns online. We are pleased to announce that we have 100% success rate with submissions and take several clients through the process daily on our support lines.
NB Out of support hours if you want to check the status of the HMRC site go to https://www.gov.uk/government/publications/making-tax-digital-for-vat-service-availability-and-issues/making-tax-digital-for-vat-service-availability-and-issues
Read what Carol Smith, Company Secretary at Peter G Smith Soil Nutrient Systems had to say:
“The development and support teams at Landmark were fantastic. We had to work at it the first time because it was a new way of submitting VAT for us all, but it was easier than I thought – I just pressed the little button and it went! I have tried doing other online submissions and they were a lot more complicated. I feel confident now in KEYPrime moving forward to next month.”
HOW DO I TAKE PART?
To join the new service talk to us or your accountant or go to www.gov.uk and search for ‘MTD ready’ then click on the first link – this will tell you about the steps you need to take and give you the option to join. There are lots of videos and guides on-line via the HMRC website or just type Making Tax Digital into YouTube. If the prospect is still daunting, read the many myth busting articles written prior to it becoming compulsory to give you confidence. The CLA, the NFU and rural accountancy firms have specialists waiting to help you – find out more on Twitter and in the farming publications.
AM I EXEMPT?
There is an exemption from the plans for reasons of age, disability or remoteness of location. This may apply even if you are not currently exempt from online VAT returns. However, if remoteness is a factor the exemption requires ALL partners of a business to be ‘digitally excluded’ because of where they live, and not just the farm address.
A small group of businesses which have more complex affairs have been given an extension for further testing beyond April, but these will have been written to by HMRC.
If you think you may be exempt contact the HMRC helpline on 0300 200 3700.
SOME MYTH BUSTERS –
- If turnover is less than the £85k VAT threshold but the business is VAT registered then it is optional to file VAT digitally but only until April 2020.
- Digital submission of VAT does not require a cloud based software package, just software that supports MTD and an internet connection. Make sure that your chosen software supplier has made successful pilot scheme submissions.
- All KEYPrime Accounts products are already HMRC tested and recognised – please note KEY32 will not be able to support digital submission.
- Currently MS Excel can be linked to HMRC via authorised ‘bridging’ software.
- HMRC will not have full access to all the information on KEYPrime – only the 9 boxes on the VAT Return will be submitted, no other information will be provided.
- Income tax and corporation tax will follow VAT but not until April 2020 at the earliest. Check this website for updates on how Landmark is developing KEYPrime and go to https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital for a lot more detail.
Updated 4 April 2019