MAKING SURE
YOUR BUSINESS IS COMPLIANT
From 1 April 2019 most VAT registered businesses with a taxable turnover above the VAT threshold (currently £85,000) were required to keep digital VAT business records and submit VAT returns using Making Tax Digital compatible software.
Step 1 – Check if and when you have to register
VAT taxable turnover is the total value of everything you sell that is not exempt from VAT and should be assessed on a rolling 12 month basis. If your taxable turnover is above £ 85,000 then your joining date will depend on your usual VAT return submission periods, and you should register now so you are ready to submit your next return under MTD.
For periods beginning on or after 01st April 2021, VAT registered businesses with turnover exceeding £85,000 must comply with the Making Tax Digital rules. The 2 year “soft landing period” ends 31st March 2021.
This means business who are MTD registered (or if they meet the conditions, will be registered for MTD), must comply with the requirements of MTD. This includes using MTD compatible software, such as cloud accounting software or API enabled spreadsheets, to file their VAT returns. In addition, the data that constitutes the VAT return must meet the MTD conditions, which includes not cutting and pasting data into the VAT return or spreadsheets where formulas are not used to connect sets of data.
Crucially, from 01st April 2022, all VAT registered traders, regardless of turnover, will be required to file their VAT returns under Making Tax Digital. So for those businesses, the sooner you start to plan for April 2022, the less disruption this will cause the business. Depending upon your financial year, the business does not want to be changing accounting systems mid-year (although sometimes unavoidable). There are many different solutions on the market, choosing a solution can depend upon your business, its turnover, the number of transactions, etc. For example an online business may generate thousands of small value transactions whereas a traditional retail store may have multiple payment methods (cash, card) and knowing which software solution works best for you is something we can help with.
Step 2 – Check you have the right software
Before you sign up you must have software that:
- Lets you submit VAT returns
- Is Compatible with Making Tax Digital for VAT
HMRC have a list of software suppliers including bridging software that are already compatible for MTD for VAT as well as those that are still in the development stage. Information can be found here or you can talk to a member of our team who are currently submitting using Quickbooks, Xero, Sage and other bridging software.
Step 3 – Sign up for Making Tax Digital for VAT
Businesses above the £85,000 threshold will not automatically be transferred to the new system and will be required to sign up to MTD for VAT in accordance with the dates detailed above.
It is important that you ensure you have compatible software in place before you sign up.
The sign up procedure can be accessed here.
HMRC will send you a confirmation email within 72 hours of signing up.
Step 4 – Authorise your software
Once you sign up you cannot use the current VAT online services to submit your VAT return and will need to follow your software providers guidance to ensure any authorisation and linking process is carried out within the software.
Please note, HMRC continue to work on their online resources and it may be that the hyperlinks above will become redundant if the website section on MTD is restructured.
How can we support you with your digital VAT returns?
Since 1 April 2019 businesses must have had MTD for VAT in place. Our Accounting Solutions team work with a number of compatible software solutions and have signed clients up for MTD for VAT. We are successfully submitting VAT returns under this regime. Please get in touch with any of our experts listed on the right of this page or simply fill out the form below and we will respond to you.
Online Accounts Services In Skipton
If you are looking for an online accounting service, Recordmaster Ltd can help you. With our accounting software solutions, you can maintain all your accounting records (incl VAT) online. We can help you decide on the correct level of entries so that your records are maintained as required by the HMRC. You can decide on how much of the bookkeeping entries you need to maintain in-house. We will also help you understand and conform to the prescribed regulations which includes all changes to MTD ( Making Tax Digital ). All taxpayers are being moved onto digital submissions including the prospect of quarterly reports to HMRC. Our quotations are inclusive of all work needed to achieve these changes.
We deliver two systems of online bookkeeping namely Prelude online and Liberty online. Prelude online is provided by Diamond Software and is a standard routine which is characterised by its ease of use and support. Liberty online is provided by Liberty Software and is a more comprehensive routine programme. It is structured on normal account descriptions rather than code numbers and has a memory system that matches previous descriptions against particular entries. Test facilities are available.
Standard package
Diamond Prelude software
Designed for non-accountants and very simple bookkeeping requirements
Unlimited online, telephone and email support together with monthly/quarterly accounting journal and correcting entries
See note on turnover restriction
From £48 + VAT per month for a 12 month period
Enhanced package
Liberty software
Designed for larger business which require more detailed accounting records with more sophisticated reports and document production
Wages/salaries up to 2 employees including directors
Unlimited online, telephone and email support together with monthly/quarterly accounting journal and correcting entries
See note on turnover restriction
From £94 + VAT per month for a 12 month period
Additional services – Input of documents on the client’s behalf – we will quote taking into account the level of activity.
Bookkeeping Specialists
Are you looking for an accountancy firm to support your business operations? You can trust Recordmaster Ltd. As a member of the Institute of Financial Accountants, we are a team of highly trained professionals who can provide our expertise for all your accountancy requirements. Take a look at our business objectives to find out more. We offer an insurance indemnity at a low cost to keep our clients protected against our fees associated with HMRC reviews, Full details are provided on the initial quotation for our services.
Recordmasters bookkeeping service requires a certain amount of the work to be done by the client. This will be discussed and agreed in advance of taking up our services.
Get In Touch
If you are looking for a reliable accountancy firm to handle your accounting requirements, look no further. Recordmaster Ltd can provide you with dependable accountancy solutions and taxation services. Our services are available in Skipton and the surrounding areas.
