VAT Making Tax Digital DOC ID: 78274 HURST VAT - MTD WHAT IS - - PowerPoint PPT Presentation

VAT – Making Tax Digital

DOC ID: 78274

HURST

VAT - MTD WHAT IS GOING ON?

What is changing – Immediate Impact

| From February 2018, the linkage between existing accounting software and the HMRC portal has been changed | Unless your software is MTD compliant you will no longer be able to submit VAT returns using your existing accounting software | Instead VAT returns will need to be manually submitted through the HMRC portal using your Gateway login

Implications

| You will need to ensure that you have your Gateway ID and password to hand! | You will also need to allow extra time for submission to ensure there are no access / reporting issues

VAT – Making Tax Digital (MTD)

VAT – Making Tax Digital (MTD)

What is changing – Future Impact

| From April 2019, businesses will not be able to submit VAT returns using the HMRC portal using their Gateway login | Paper VAT returns will no longer be accepted by HMRC | VAT return submissions will only be accepted from MTD enabled software | Businesses will need to maintain digital records for VAT purposes

Implications

| Depending on the accounting software in use, you may need to undertake the following: ✓ Get updates to your accounting software from your provider ✓ Upgrade your existing accounting software ✓ Change accounting software to a package that is MTD enabled ✓ Review your accounting processes where digital records are not maintained (e.g. expenses or batch sales journals) to ensure that you are compliant with the new requirements

Generally

| Some software providers will issue updates to their software to make it MTD compliant, however this will depend on the individual providers and there may be a cost associated with this. | Some software providers are only making the MTD compliant changes to newer versions

• f

their software which may require a purchased upgrade | As the compulsory date for MTD is not until April 2019, this is very much an unknown at the stage | For clients with bespoke or non-standard software, they should approach their providers to understand their options

SAGE

| Sage have made their software MTD compliant from v24

• nwards

However:

| Upgrading to v24 requires a change in their charging model, away from a license purchase option to a monthly subscription model (as is the case with XERO) | The new subscription model could represent a significant increase in cost for clients which will depend

• n the complexity of their business amongst other

factors | Clients not currently paying any license costs (i.e. older version users) will now become subject to monthly costs

Responses from accounting software providers

VAT – Making Tax Digital (MTD)

HURST

MTD – NEXT STEPS

Upcoming seminar

Thursday 10 May 2018 | 8.00am – 10.00am We will be holding a Seminar on Thursday 10th May, with internal and third-party accounting experts providing further insight to the upcoming changes. Experts will be on hand to demonstrate “Xero” and “Sage” and advise which package will be best suited to your business needs. Both are cloud accounting software packages capable of linking to various add

• ns,

helping streamline accounting transactions. Both software packages are also fully MTD compliant.

VAT – Making Tax Digital (MTD)

CLICK HERE TO REGISTER FOR THIS EVENT

Contact us if you have any questions!

Tel: 0161 477 2474