Making Tax Digital is finally here.
Which means accounting records must be kept digitally and VAT returns need to be submitted straight to HMRC using MTD compatible software. This applies to periods that start after 1st April 2019.
If you are VAT registered (and not voluntarily) you need to take these steps to be compliant;
- Sign up for Making Tax Digital for VAT with HMRC. This can be done here.
- Ensure your bookkeeping software is MTD compliant and link it with HMRC for digital submission of VAT returns. Details of how to do this can be found here.
But wait….there’s nothing for you to do if;
- The Peloton submits your VAT returns for you, we’ve got this covered.
- You have voluntarily registered for VAT – i.e: you have chosen to register for VAT even though you are not required to. If this is you, you do not need to be MTD compliant yet. HMRC are, however, encouraging businesses to register so they can benefit from MTD.
- Your current VAT period started before 1st April. You’re not required to register just yet, but you must do so anytime before submitting your first return that starts after 1st April. That said, there’s absolutely no reason why you can’t still register to get ahead of the game!
Of course, if you’re not VAT registered, you’re not currently affected by any of this.
If you’re worried that you might not be compliant, or you have any questions – get in touch.