What is it?
It is a part of HMRC’s ambition to become one of the most digitally advanced tax administrations in the world.
It commences on 1 April 2019 with VAT. All UK businesses that are VAT registered and above the £85,000 VAT threshold will be required to keep their records digitally and submit VAT returns to HMRC using MTD – compatible software for the first VAT period starting on or after 1 April 2019. Other areas of MTD, such as Income tax and Corporation tax, have been put on hold until 2020 at the earliest.
Businesses must ensure that they are ready to comply.
What does it mean for your business?
When will software be available?
We at Fyfe Moir & Associates are geared up for MTD where it is us who are charged with preparing our clients’ returns. If you prepare your own return then we can advise on how you can become compliant.
Are there any exemptions?
According to HMRC’s VAT notice the MTD rules do not have to be followed where HMRC are satisfied that:
The business is run entirely by practising members of a religious society whose beliefs are incompatible with the requirements of the regulations (for example those religious beliefs prevent them from using computers).
It is not reasonably practicable to use digital tools to keep business records or submit returns, for reasons of age, disability, remoteness of location or for any other reason.
The business is subject to an insolvency procedure.
So, a very limited range of exemptions.
What records need to be kept?
We can provide a schedule of these.
What do I need to do next?
The first step you need to take is to review your current software solution.
If you are not currently using bookkeeping software, you need to investigate what options are available to you and which is the best solution for you, ensuring this is MTD compliant.
If you have a VAT scheme or set of VAT calculations that are not handled by bookkeeping software and you need to continue to use spreadsheets you need to look at the bridging software that is available.
If you need help, we can provide it.
The implementation of MTD is fast approaching. If you need our assistance then please contact us now.
Have you heard about our app?
As a firm we are constantly looking for ways we can improve the service we offer our customers and we are proud to announce the launch of our brand new FMA App. It’s completely free of charge and it’s available on iOS and Android.
Our new App is packed with financial calculators and provides you with up to date, important accountancy data at your fingertips.
It’s easy to download. Simply search for the ‘MyAccountants’ app, download and enter FMA2006 when prompted.
Enjoy the App with our compliments!