Ditch paper receipts – as VAT goes digital
Date Published: March 4, 2019
Category: HMRC News, Making Tax Digital
Time to be productive
HMRC is encouraging businesses to lessen time spent on paperwork and join its digital revolution by testing the new Making Tax Digital (MTD) service for submitting VAT returns.
HMRC is urging more businesses to get involved early by getting the software and starting to test the service now.
Mel Stride, Financial Secretary to the Treasury, said:
“Anything that helps businesses to manage their tax more easily so they can focus on what they do best – innovating, expanding, and creating jobs and profits – is what every modern business needs. In a world where customers and suppliers are already banking, paying bills and shopping online, it makes sense for HMRC and businesses to bring tax affairs fully into the 21st century. Going digital with business records and taxes is the next step to businesses getting more control over their business and their finances.”
What businesses need to do?
- Take steps to find out if your business is affected by the Making Tax Digital changes and what you need to do if it is. Most businesses above the VAT threshold have to start keeping their records digitally. Sending their VAT return to HMRC to direct from their software for VAT periods beginning on or after 1 April.
- Talk to your accountant or another agent – If you use one to manage your VAT affairs. About how they are making returns Making Tax Digital compliant.
- Speak to your software provider if you already use software to ensure it will be compatible.
- Those businesses who are either not represented by an accountant and do not already use software will need to select software to use and sign-up to MTD. Our GOV.UK webpages provide information on a wide variety of products, from free software for businesses with more straightforward tax affairs to increasingly sophisticated paid solutions. There are also products that can be used in conjunction with a spreadsheet for those businesses who don’t want to change their underlying record keeping system.
For more information
To talk to one of the BTCSoftware team about its MTD for VAT solutions or to book a demo, call 0345 241 5030 or email Sales@BTCSoftware.co.uk or visit www.btcsoftware.co.uk