What do you need to do before the fast approaching 7 August VAT filing deadline?
Making Tax Digital (MTD) for VAT came into force on 1 April 2019 for most businesses in the UK with a taxable turnover above the VAT threshold of £85,000. It was the first step in the HMRC’s ambitious plans to become one of the most digitally advanced tax administrations in the world.
MTD for VAT requires all mandated businesses to:
- keep digital records for all VAT transactions; and
- use software to submit VAT returns to HMRC directly from that software, via the MTD service.
Since its introduction over 600,000 businesses have signed up to MTD for VAT and those making their VAT returns via software continues to increase.
However, there remains a high number of mandated businesses yet to sign up as we fast approach the first VAT filing deadline for the first tranche of businesses with quarterly VAT periods (April to June) since MTD became mandatory.
It is important to note that if you pay by direct debit, you need to sign up by the end of July. Businesses who pay by other methods need to be signed up at least 72 hours before their VAT return is due on 7 August.
Sharon Gorman, AIA Director of Development, added her thoughts: “Accountancy and the wider finance sector in general continue to become ever more digitally focussed, it is therefore essential that our members utilise the AIA resources in order to feel confident of their next steps regarding MTD for VAT.
“As I have publicly stated many times, I would urge members to approach the MTD process as a positive opportunity to review and improve processes in order to ensure compliance, oppose to thinking about MTD as another ‘hoop’ to jump through.”
If you haven’t signed up already, AIA would urge you to act now. As an association we are here to help and guide members through the MTD process with resources available on the AIA website, through our strategic partners Tolley and GoSimpleTax, as well as step by step guides found directly on the GOV.UK page.
On 25 July GoSimpleTax will be running a FREE to attend webinar which will aim to show delegates how simple the MTD digital journey can be if the correct steps are followed. Book your place: https://www.eventbrite.co.uk/e/gosimplevat-vat-filer-webinar-registration-59891894268.