Next month heralds the first obligatory VAT return submission via Making Tax Digital (MTD) compliant software, online. Are you ready for your first MTD VAT return?
Submitting your VAT returns online is the first part of the government’s plan to move all tax reporting digitally, and has unfortunately already been dogged with numerous issues and concerns.
It has been reported by HMRC that over 40% of VAT registered businesses are not even aware of the MTD initiative, which leads to a major concern that businesses will not have the systems in place to cope for filing returns online, from next month.
HMRC themselves have been facing system errors, arising as a result of a short lead to time to the system going live and minimal testing taking place. HMRC have assured businesses that they are working on the issues and have doubled the number of people to provide telephone support to work through the system errors.
And even for those businesses that are well prepared and ready to submit their VAT return have had a system error for the last two weeks, and have not been able to file their VAT return early.
MTD affects those businesses who are VAT registered with turnover of £85,000 or above, and are required to submit returns via MTD compliant software and keep records digitally (for VAT purposes only).
We can help
Southside Accounting have been preparing for MTD since the consultation phase and are well prepared to support you with your MTD VAT return submission.
Southside Accounting are your local accountants in Wimbledon and London. We’re local, like you. And we’re a dynamic
small business. Just like you.
Southside Accounting provide sole trader and limited company services, including tax return services, to small businesses in the UK and are advocates of cloud accounting software and use Xero and QuickBooks.
Written by Shaima Todd.