MTD for VAT – Are you ready?

making tax digital
Jan
20
Posted 2022 by Jane L

If you are VAT registered and you’ve already registered for MTD for VAT, then well done, you can ignore the rest of this blog.

If you haven’t, you’d better read on.

What’s MTD for VAT all about?

MTD stands for Making Tax Digital, and it involves keeping your records in a digital format and submitting your quarterly returns to HMRC in digital format .MTD has been around for a couple of years, but has only been compulsory so far for businesses with turnovers in excess of £85,000 per annum which may be why you have missed it.

What’s new with MTD for VAT?

From 1st April 2022, all VAT registered businesses must be MTD compliant and use digital software to submit their VAT returns.

Have you left MTD too late?

Does MTD for VAT apply to you and if so has your accountant or bookkeeper discussed MTD for VAT with you? If not, you urgently need to ask them whether you are compliant, and if not, what is happening about it.

What’s the best accounting software for MTD for VAT?

There are numerous accounting packages to choose from, and many have add-ins which make them extremely flexible and customizable for your business. The ones we recommend and use on a daily basis for our clients are industry leaders in cloud accounting software and include:

  • Xero
  • Quickbooks
  • Sage Cloud accounting
  • Kashflow
  • Bridging software

But we also use others where we have been specifically asked to do so.

If it all feels too complicated, just ask our specialists for advice. We’re happy to have an initial chat with you free of charge, so you have nothing to lose by calling us.

What’s not changing under MTD for VAT?

The timescales and dates for filing your quarterly and annual VAT returns remain the same.

What should you do now?

  • Ensure that your VAT return is prepared on the right software and platform.
  • If you haven’t decided which accounting software to use, get in touch with us and have a chat with one of our experts. Different packages suit different people and businesses.
  • Decide whether it’s still worth being VAT registered. The benefits you gained may not be worth the effort involved in going digital.
  • Realise that MTD is not going away, in fact, after MTD for VAT, many people will have to comply with MTD for income tax (including those whose income exceeds £10,000 from self-employment, partnership or rental properties) which comes into effect from 6th April 2024.

Who can help you with MTD for VAT?

We can!
We can help you with:

  • Choosing the best accounting software package for your business. You can even request a free demo of them.
  • Assisting you with your VAT preparation, completion and filing within the new regime
  • Oursourcing your VAT, payroll, self assessment and many other accounting tasks
  • Business planning, forecasting and business growth advice.

Our clients have access to our own support team for their cloud accounting / software enquiries.

Our team are really patient and will speak to you in a language that you can understand. But more than that, they take the worry away from you, leaving you to run your business.

See some of our reviews below and get in touch.

Next steps

If you feel that you could benefit from chatting about MTD for VAT with one of our team, do get in touch. We are already answering our clients’ questions with MTD training and would love to help you get to grips with it too.

What our clients say about us

Very happy with the ongoing support provided by this company. Sarah is so helpful and patient and nothing is too much trouble. She responds quickly to all my questions and always has the solution! [Sarah helps Janet with Xero and Dext]

Janet Cushnaghan

Sarah is a fantastic, knowledgeable all-round accountant who helps us every month with our VAT, CIS returns and all general areas of our books to ensure they are accurate and tidy. Highly competent professional, nothing is too much effort or a silly question. She has helped us get to grips with and understand the accounting principles by explaining things clearly, always giving us helpful advice and seeing ‘the bigger picture’. Promptly follows up queries and is proactive with reminding us of key dates throughout tax year. Gives me confidence in using the accounting software and helps with where to go to find specific training. Friendly and approachable and always willing to help. Would highly recommend!

Uses: QuickBooks Online, QuickBooks Self-Employed, QuickBooks Desktop

Services: Accounting, Book cleanup, Bookkeeping, Business budgeting and forecasting, Consulting, Financial reporting, Payroll, QuickBooks consulting, QuickBooks Payroll, QuickBooks setup, QuickBooks training, Self-assessment returns, Small business tax, Tax preparation, Tax services, Tax setup

AWG Electrical Services

Thanks for continuing to be visionary in providing a 21 century and digital accounting service to individuals and businesses. We really appreciate everything that you and your team does for us.

Jo Evershed