Changes in the VAT process
Owners of VAT-registered businesses should take note of the changes to the system which will apply from the 1st of April 2019. All businesses with a taxable income of above 85,000 pounds will have to keep digital records and they will also be required to provide all of their VAT return information to HM Revenue and Customs. This will have to be accomplished by making use of Making Tax Digital functional compatible software. If your obligation date is 1st April 2019 then you should know that you will have to pay attention to the MTD for VAT rules which will initiate on the first day or your new VAT period. This will start on or just after 1st April 2019. You are not entirely without assistance because HMRC has made some guidance available that will help people with their submissions. People will benefit from using MTDfVAT which is an affordable, secure and simple cloud-based solution which is useful to prepare for the new MTD for VAT filing requirements.
Who will be affected?
There is an estimated 3.5% of VAT registered individuals especially those with multifaceted VAT arrangements who can expect to be mandated into MTD for VAT only from 1 October 2019. People in this group include traders based oversees, trusts, not for profit companies and this will also include some charities and then there are also those who are under obligation to make payments on accounts and annual accounting scheme users. To avoid unnecessary problems it is important to be prepared to meet the 2019 deadline. It will be helpful to have access to user friendly and flexible MTD for VAT bridging software. People should know that MTDfVAT is a cloud based software, a software as a service product. What it actually does is that it provides very useful MTD for VAT bridging software functionality which makes compliance easier. Nevertheless, there will be no unnecessary disruption of accounting processes and systems already in place. The software has a control center which has several key functions such as management dashboard, VAT report center, a dashboard view of all obligations and control of submissions both for individuals and companies.
The MTD software helps with submissions and validations of VAT data complying with the MTD format which can then be forwarded to HMRC at the click of a button. It is possible to view all of your MTD VAT payments and other financial histories. MTDfVAT is fully compatible with most spreadsheet programs whether they are set up as single tab spreadsheets or as multiple workbooks. Many things is done automatically such as the recording of the provided data in digital format straight from the spreadsheet into an MTDfVAT compliant format which can then be submitted to HMRC where those submissions can then be validated. Several applications are supported such as Reckon One, Xero, FreeAgent and Quickbooks. There are ongoing negotiations to ensure that there will be no glitches between MTDfVAT and the abovementioned software. Even CSV imports from Sage will be accepted and more bookkeeping software will be added to ensure better functionality within the system. For more information visit this website; https://mtdfvat.co.uk/.