21 Jun Making VAT digital: What does it mean?
Is your business registered for VAT? Is your taxable turnover over £85,000? If you answered ‘yes’ to both of those questions then from 1st April 2019 your business needs to comply with the new Making Tax Digital VAT rules.
Filing your VAT return
Businesses must use a system which allows the VAT return information to be reported directly to HMRC. So any returns commencing 1st April 2019 cannot be submitted using your government gateway account.
Also software must be used which communicates with HMRC using an Application Programming Interface (API).
If your software is not compatible, you may be prevented from submitting your VAT return and could face penalties of up to 15% of VAT due.
Digital record keeping
VAT registered taxpayers covered by the Making VAT Digital rules will no longer be able to keep manual records.
For those who use a combination of software and spreadsheets, digital links must be in place by 1st April 2020 to transfer data between each function.
What software should I choose?
At Egan Roberts we are all Xero Certified meaning we are able to give you guidance and advice on how to use Xero to get the best results out of the software.
What accounting records should I keep?
With the changes coming into place putting a stop to manual record keeping, take a minute to read our blog on what accounting records you should be keeping.
If you would like any further information about Making Tax Digital or Xero software please contact us by filling in the form below, call us on 01254 583515 or visit our website www.egan.co.uk