HMRC have recently been introducing awareness campaigns all about Making Tax Digital for VAT (MTD for VAT), by now most VAT registered businesses should be aware of the new government initiative by now. Although, it’s difficult to keep up to date with it since changes are often being announced.
We have rounded up the latest on tax’s shift to the digital world, so you can be prepared for the impact its going to have on you.
Making Tax Digital for VAT
April 2019 is when the first stage of Making Tax Digital is set to go live. The public beta has now been launched and the first VAT return submissions using this new process have been made. HMRC want to reduce the number of errors made when businesses key in their VAT return each quarter, as a result their aim is to stop offering free software for submitting your VAT return. Instead they want business to use third party software that digitises the recording of your business transactions and subsequent VAT return submission.
MTD for VAT enabled software will not only be able to electronically submit your VAT return but get important information regarding amounts due and payments made. All via the HMRC Application Programming Interface (API) There is still time to prepare to submitting your VAT digitally, but it would be a good idea to get ahead of the game. GoSimpleTax will be introducing our new software GoSimpleVat in February 2019. You’ll be able to familiarise yourself with the digitalisation of tax in advance, so when it comes April you’re not blown by the change.
Making tax digital for business
You won’t need to worry about making tax digital for business for a while yet (April 2020). There isn’t however a definitive date in place for this, it may even be possible to see this further delayed. So, for now, the submission of the self assessment tax return is continuing as normal.
In the meantime, HMRC are continuing to develop their API’s to allow software developers to prepare for April 2020 and beyond.
Submitting your self assessment tax return
GoSimpleTax is on the HMRC’s list of recognised suppliers. We also offer support and information, but go one step further by offering tax-saving suggestions and we allow you to see your tax owed in real time.
Get prepared for Making Tax Digital and try our 14-day free trial of our self assessment tax return software via the Upad Landlord Club!