APPLY FOR MORE TIME FOR MTD DIGITAL LINKS
For VAT periods starting on or after 1 April 2020 (or 1 October 2020 for deferred businesses) your accounting systems must use digital links for any transfer or exchange of data between software programs, products or applications used as functional compatible software. That is the end of the current 12 months “soft landing” extension. Businesses […]
NO VAT PENALTY IF YOU MISSED THE FIRST QUARTERLY MTD DEADLINE
If you pay your VAT quarterly by direct debit the sign-up window has closed for the 7 August (30 June quarter) submission. Do not worry as HMRC have announced that you will not be penalised this time so you may file the old way and come back when the direct debit has been collected to […]
USE OF SPREADSHEETS IN PREPARING VAT RETURNS
Example 3 in the VAT Notice describes a business that uses a spreadsheet and bridging software from April 2019, which allows the information to be transferred to HMRC via an API. It uses a spreadsheet to record all sales, purchases, and expenses in a digital format. The VAT Return is then prepared within the spreadsheet, […]
“SOFT LANDING” FOR MTD FOR VAT FOR THE FIRST YEAR
For the first year of MTD for VAT (VAT periods commencing between 1 April 2019 and 31 March 2020) businesses will not be required to have digital links between software programs. The one exception to this is where data is transferred, following preparation of the information required for the VAT Return, to another product (for […]
WHEN DOES MTD FOR VAT START?
The Making Tax Digital rules apply from your first VAT period starting on or after 1 April 2019. A ‘VAT period’ is the inclusive dates covered by your VAT Return. For example, where a business submits quarterly returns covering the periods to 28 February, 31 May, 31 August and 30 November, the business will need […]
MAKING TAX DIGITAL FOR VAT GUIDANCE ISSUED
HMRC have now issued their detailed guidance on the digital record keeping and return requirements for Making Tax Digital (MTD) for VAT. VAT Notice 700/22 clarifies that spreadsheets may still be used to keep business records provided that there is bridging software that links to the Government gateway. There will however be a one year […]
