by Meera Rajah
Please don’t hesitate to get in contact with us, we will respond to your enquiry as soon as possible.
18 March 2019VAT
by Meera Rajah
MTD requires that submission of the VAT return for businesses with a taxable turnover exceeding £85,000 per year is made from API-enabled software rather than by rekeying data into the HMRC website and that accounting records are maintained digitally. MTD only applies to VAT returns that commence on or after 1 April (or 1 October), so a three month return ending 31 May 2019 is not within MTD.
If you currently prepare the VAT return using any of the following three methods, James Cowper Kreston has a solution to enable you to meet the MTD requirements for at least the first year to April or October 2020.
The solution, a bridging software product, will allow the VAT return to be submitted from the spreadsheet. This product is particularly useful as a short-term solution for a year, during the “soft-landing” phase of MTD. This introductory phase does not insist upon digital links back along the chain of data preparation, which only need to be introduced after one year of MTD. In the first year the only requirement of MTD is to use digital records and to submit returns from API-enabled software. An enhanced version of this bridging software is available which provides a permanent, long term solution for MTD.
There are some software providers for specifc sectors including education for example, who have yet to upgrade their software and obtain HMRC approval, and so have less than fve months (if not within the delayed exceptions) to do so.
To check if you are prepared for MTD please use our flowchart tool or get in contact with our VAT team on +44 (0)1635 35255