We are ready – are you?
MTD is happening. If you are a VAT registered business and your turnover (VATable sales) are over the VAT registration threshold (£85,000) you will have to submit your VAT returns via MTD.
This means you will either have to use “bridging software” or MTD complaint software. This will be for all VAT returns where the VAT period starts after 1 April 2019, so if you file quarterly returns, the first VAT return will be the quarter June 2019, July 2019 or August 2019. Therefore you need to have your data in a suitable format from the start of the relevant VAT period.
HMRC has produced a list of MTD compliant software. If you are using any of the software in this list you probably don’t need to worry too much as your data is already in the correct format. But you will need to create a Business Tax Account If however you are using spreadsheets, non-compliant software or even a handwritten cash book, you must consider your options immediately.
HMRC has stated:
there are over 200 MTD compatible software products available, including some free products, and over 140 existing subscription products being updated at no cost at all.
Here at DSSBH our first choice of software is Xero and we can confirm that Xero is on HMRCs list of MTD compatible software, and Xero do not intend to make any changes to the subscription. Our clients know that if they use Xero, we include the cost of the subscription as part of the package of services that they subscribe to within the firm. That means we do not need to increase our prices as a result of software requirements for MTD. It also means that apart from setting up a Business Tax Account, there is nothing else for our clients to worry about, because we ensure everything else is covered.