Now we are in April we are officially within the first period of MTD VAT. We have been working extremely hard with clients, advisors and accountants in preparation for April. We have also met over 400 NFU Members who have attended our joint NFU Meetings as their sole recording software suppliers. Most people are surprised at how EASY the process is:
- Make sure that you have the latest version of your MTD compliant software
- Register with HMRC
- The accounts software fills in automatically the same 9 boxes which were previously populated manually
- In KEYPrime press the new green MTD button on your VAT return screen and you are away!
Here are a few of the misconceptions that we have come across in the past few weeks.
- Everyone has to join the service by 1st April…
WRONG – only businesses with a VAT’able turnover above £85k will need to join MTD in 2019, and those that do need to comply wait until the first complete VAT data period after the 1st April before submitting. For example, if your quarterly period ends at the end of April you have until July to make your first submission. Start researching now.
- HMRC are collecting additional information…
WRONG – only the 9 boxes of information that you currently provide is collected by HMRC.
- You have to use cloud software or software on the WEB to submit under MTD…
WRONG – the software that you use (whether a full accounts system or a bridging link from a spreadsheet) must be on the HMRC approved list, but this can operate from your PC or on the Cloud.
- Signing up to and submitting under MTD is a user’s nightmare!
WRONG – with a timely and organised approach, the right software and a good support team behind it the process is straightforward. Ask the many KEYPrime clients who signed up under the Pilot Scheme and have been successfully submitting VAT under MTD.
- HMRC will penalise me if I get in a muddle!
WRONG – HMRC are committed to taking a lenient approach during the changeover period and will not be issuing penalty notices where genuine errors occur.
STILL NOT SURE ASK FOR HELP from HMRC, your accountant, your membership organisation or software supplier.