Here at Jonathan Ford & Co we’re watching all the latest developments and announcements…so you don’t have to.
Will it affect your business?
Yes – if you are VAT registered and are over the VAT threshold.
When does it start?
It comes into action from 1 April 2019 so VAT returns to 30 June 2019 will be the first ones submitted under the new rules.
Phew! That’s ages off. Can I forget about it until then?
Er, no. MTD for VAT could mean a whole new computerised bookkeeping system for you. You want to be ready in advance of the new rules not winging it when they come in. Also, if you have a year end that isn’t March you may want to change accounting systems now to avoid changing over mid year. For example, if your year end is 30 September 2018 and you need to be on a new bookkeeping system to comply with MTD for VAT then the time to change over is 1 October 2018.
I can still use a spreadsheet though?
HMRC will allow API enabled spreadsheets to submit the information so you may struggle to use your current spreadsheet. There are also ‘bridging’ solutions becoming available to link software to HMRC. We say ‘why bother?’ If you are still using spreadsheets, paper records, no records at all or a dodgy version of Sage then it’s time to join the 21st Century!
What can I do about it?
I already use Xero/Freeagent/Kashflow etc so I have no problem, right?
Hmm, perhaps. The new rules mean you have to keep your underlying records digitally. You will need to make sure that you don’t just post totals of sales received each day unless you’re operating a recognised retail scheme.
Can I claim I’m a member of a religious group that doesn’t do technology?
Yes! But good luck with that one. You’ll need to convince HMRC you really are.
Where can I find out more information?
The HMRC dry stuff is here if you want to take a look.