Keep up, Keep in touch – don’t get penalised for non-compliance on MTD next year
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.
When does it happen?
MTD for VAT begins in April 2019. VAT-registered businesses above the threshold of £85k will have to keep digital records and submit VAT returns from April 2019 onwards, using compatible software. HMRC lists Landmark’s KEYPrime as software that is compatible with MTD for VAT.
We are now in the MTD pilot phase for VAT and several Landmark clients have applied and been accepted to test the scheme and we are pleased to announce that we have 100% success rate with the first submissions.
Read what Carol Dodson, Finance Manager, Courteenhall Estate had to say:
“I have used Landmark software for 11 years, but was feeling a little daunted by the prospect of MTD-VAT, so decided to join the pilot scheme to provide me with an insight into what will be expected next April. The whole process was supported by Landmark, enabling me to submit the VAT Returns very smoothly and efficiently. I’m now confident that MTD-VAT via KEYPrime will be easy to administer and process.”
How do I take part?
HMRC are writing to 200,000 eligible businesses during the winter to invite them to take part in the pilot. To join the new MTD service talk to us first and we can talk you through the process in relation to KEYPrime.
For more information 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. Your accountant will also have plenty of information to share with you.
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.
- All KEYPrime Accounts products are already HMRC tested and recognised – please note KEY32 will not be able to support digital submission.
- 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.
Some business can claim exemptions and some will be able to have a deferred start date to October 2019. For the exemptions and other information, please see the government website – www.gov.uk/guidance/help-and-support-for-making-tax-digital
Please follow the www.gov.uk/guidance/use-software-to-submit-your-vat-returns a short video explaining the sign up process can be seen at www.youtube.com/watch?v=kOKD4kHvlzI