Welcome to the Evenstone blog

The place for e-commerce and online retail news.

Making Tax Digital – What Is It?

Using spreadsheets to keep your books and filing VAT via the HMRC portal will be a thing of the past as of April 2019.

Making Tax Digital (MTD) is a government initiative to move taxation online, affecting most businesses from 1st April 2019.

Registered businesses will have to maintain digital VAT records / submit returns to HMRC through MTD compatible software.

Making Tax Digital – The Benefits

● MTD in relation to VAT shouldn’t present problems for the majority of businesses – Nothing fundamental has changed as most UK businesses already report / pay VAT quarterly.

● It’s easier to submit returns via online accounting software

Who is Affected From April 2019?

If you’re VAT registered, or close to the VAT threshold (currently £85,000) and don’t use digital accounting software / currently submit via the HMRC portal, you need to start preparing for MTD now…

What Does This Actually Mean?

You will no longer be able to prepare / file VAT in this way – It’s critical you prepare to avoid HMRC penalties.

● Put simply, if you calculate VAT manually and submit (via the HMRC portal) and / or send to an accountant to submit, you’ll need to select MTD compliant software and use to calculate / submit VAT returns directly.

What Do I Need To Do?

● Software selection – Ensure software is MTD compliant – Please see below for guidance – https://www.gov.uk/guidance/software-for-sending-income-tax-updates . We can help you select the best software and guide you through migration. Contact us here

● Bookkeeping – Ensure you’re confident to prepare accurate VAT returns – This is critical for both compliance and tax efficiency – if you get it wrong you could lose out financially and or be subject to HMRC penalties – It’s worth drafting in the experts! Contact us here

Let Evenstone Do The Hard Work For You….

● If you’re an Evenstone client – Don’t worry – We have it covered, you don’t need to do a thing – The software we use is HMRC compliant and we’ll integrate new technology introduced by HMRC – You won’t spot the difference!

● If you aren’t yet an Evenstone client – We’re here to help migrate to digital software such as Xero or Brightpearl and support you with bookkeeping to ensure both compliance and tax efficiency – We’re also offering a Free Xero Software account for 12 months to all new clients

Please contact us for us for more information.

Comments are closed.