You may have heard about a regulation that is soon to be introduced regarding VAT submissions. In July 2018, H.M. Revenues and Customs published further details on the Making Tax Digital (MTD) requirements, so businesses and companies can prepare for the start of this new statute on April 1st 2019.
Part of the MTD for VAT requirements, it demands businesses that have registered a turnover of £85,000 or above will have to keep its VAT records in a digital format. This means making use of MTD for VAT compatible software.
The software must be later used for submission directly to the HMRC. BTC Software Solutions has a MTD for VAT software package that includes a feature for submission directly to the HMRC. Moreover, it can remind the business when the submission is due and how much VAT is expected.
Companies and organisations below the VAT threshold do not have to comply with the regulation, but can do so voluntarily, if they wish. There are several companies that sit just below the threshold and have aspirations to make larger profits in the coming financial year; it could be that these businesses will have to begin using MTD for VAT software once the threshold is breached, so it’s a good idea to get ready in time.
The £85,000 threshold is always subject to amendment but this figure is usually changed only during the Chancellor of the Exchequer’s Budget Reports. Although businesses who sit above the VAT threshold don’t have to begin using the MTD for VAT compatible software until April 2019, many agents are getting on board now and using the preparation time as a kind of good practice – for when the provision goes live.
At BTC Software Solutions, software that is compatible for MTD for VAT returns is available with a number of features that will help keep your accounting and tax records all approved by the HMRC.
As well as keeping all the VAT returns records on one piece of software, it can be used as an Excel spreadsheet and bookkeeping bridging solution. Most records within the accounts departments are based on Excel spreadsheet templates or accounting software like Sage. The BTC Software Solution for MTD for VAT helps to easily merge the records already being kept by the business, so that they can tidily and lawfully be submitted to HMRC on the required date.