Making Tax Digital for VAT
HMRC are starting with the introduction of Making Tax Digital for VAT, which means businesses need to change the way they submit their VAT Returns.
From April 2019, most VAT registered businesses with a taxable turnover above £85,000 must keep their VAT records digitally and use Making Tax Digital (MTD) compatible software to submit their VAT Returns. Read more here about HMRC’s Making Tax Digital plans.
Does it affect me?
If your organisation is a VAT-registered business with a taxable turnover above the VAT threshold (i.e a turnover above £85,000) then you will be required to use the Making Tax Digital service to keep records digitally and use software to submit your VAT returns from 1st April, 2019 onwards.
The exception to this is for a small minority of HMRC customers who fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (government departments, NHS Trust), local authorities, public corporations, traders based overseas, those required to make payment on account and annual accounting scheme users. The deferral will apply to around 3.5% of mandated customers. For these customers, HMRC will be delaying mandation until 1 October 2019 to ensure there is sufficient time for testing the service with them in the pilot before they are mandated to join.
We can help
With the deadline approaching, K3 can help.
We have created a Making Tax Digital for VAT app which allows you to submit your VAT return digitally and verify and store your submission history, so making you compliant.
K3|digital VAT (UK) is recognised by HMRC for UK Making Tax Digital and is listed on the HMRC’s list of software products that support Making Tax Digital, which means that the HMRC has been presented with a demo of our app and the features which support compliance are:
- Visibility into your VAT obligations
- Creating VAT returns based on VAT obligations
- Submitting the VAT return to HMRC
- Viewing your VAT liabilities and payment
Why choose the K3|digital VAT (UK) App
Whilst there are other filing systems available, K3|digital VAT (UK) has been developed to support ERP products including Dynamics AX, Dynamics NAV and K3 Sigma and has many more advantages.