MTD – Preparing Your Business

For many businesses the ability to log onto HMRC and manually complete and submit a VAT return is being removed.  The following changes are taking place:

• HMRC are changing servers and the functionality to submit VAT returns the old fashioned way will not be available to many businesses
• Businesses and agents will need new gateway credentials to use the new server
• You will be required to keep digital records of your VAT returns for 6 years
• The only way to submit a Vat return for periods beginning on or after 1 April 2019will be to use compliant software and submit from that software  - if your next VAT return is April 19 then it will be fine to do it the old fashioned away and your July return will be the first one due under the new regime so there is a little time yet

Clients preparing their own VAT returns:

1. You will need to check with your software supplier that they are MTD compliant – most of the major names are working on this but people using older Sage desktop versions should check for upgrades that are MTD compliant
2. You may need to activate your software
3. You will need to check your HMRC log in and ensure it is MTD ready

 
For clients who use book keepers and myself, we are in the process of setting up agent services accounts and securing additional software as we’re ready in good time.
 
So in reality a business filing a quarterly return from April to June 2019 is likely to be first affected by the change with the filing date of 7 August 2019 being unchanged.
 
HMRC have issued guidance on this link.