HMRC has prolonged its Making Tax Digital for VAT (MTD-VAT) pilot, which means that each one prospects mandated to make use of the MTD service from April at the moment are capable of entry the pilot. All Worth Added Tax (VAT) registered entities with an annual VAT-able turnover of £85,000 or extra will now due to this fact have the possibility to check their accounting programs, previous to them being required to maintain a digital file of their VAT transactions from 1 April 2019 onwards.
Beneath Making Tax Digital companies are required to maintain digital VAT enterprise information and ship returns utilizing Making Tax Digital (MTD)-compatible software program. Companies with a taxable turnover beneath the VAT threshold may also join MTD for VAT voluntarily.
HMRC encourages all companies to affix the pilot saying it should ‘assist you to put together for these adjustments sooner and your suggestions will even assist to form the service because it continues to develop.’
Over three,500 companies have already joined the pilot scheme in line with HMRC with the variety of each day sign-ups now exceeding 100. Different VAT companies which might be mandated to affix from October 2019 are seeing the pilot scheme step by step confide in embody these corporations as properly.
Clare Sheehan, head of buyer readiness for Making Tax Digital, stated: “The Making Tax Digital pilot is now out there to all companies who might want to use the service from April. This marks a big milestone in direction of our supply of a contemporary tax administration.
“We encourage all eligible companies to affix and check out the service earlier than they’re mandated to make use of it.”
Brian Palmer, tax coverage skilled on the Affiliation of Accounting Technicians (AAT) stated: “HMRC is rightly urging ‘as many eligible companies as potential’ to participate within the pilot forward of the April mandation. It makes excellent sense to take action. Failing to have interaction with the pilot places your or your shopper’s agency liable to making errors or discovering you have to change the best way you report figures after the mandation date, probably which means you may be non-compliant. Becoming a member of the pilot now means you possibly can examine any teething issues with the system and for HMRC themselves to trust within the system, and so that you can practice up all related employees with none worry or concern of penalties.”
HMRC advises enterprise to contact any agent they use to seek out out when it could be greatest for them to affix the pilot and to make sure that they’ve the suitable software program package deal.
‘In case you already use accounting or file maintaining software program you must also converse to your software program supplier to seek out out when it is going to be up to date for MTD,’ says HMRC.
Palmer advises that there are roughly 70 software program options out there for MTD-VAT and these could be discovered right here on the HMRC web site.
“So there actually isn’t any excuse for not having an answer in place,” he warns.
AAT has produced an in depth information to assist accountants and bookkeepers put together its shoppers for the primary implementation part of Making Tax Digital. That is out there at aat.org.uk/mtd-guide