Over the last couple of weeks there have been conflicting views in the press over the timeframe for the roll out of MTD as a result of an announcement that resources will be inevitably required for Brexit projects.
Importantly, VAT registered businesses with a turnover in excess of £85,000 will still be obliged to comply with MTD from April 2019 and will be required to do the following:
- Keep records in a digital format as required by the new regulations;
- Create a VAT return from the digital records in MTD compatible software and provide HMRC with this information digitally;
- Be able to provide HMRC with VAT data on a voluntary basis;
- Be able to receive information from HMRC via the API platform in relation to your business’s compliance with obligations under the new regulations.
However, the second phase of MTD, which aims to bring all non VAT registered businesses within the scope of MTD in relation to their business records, is likely to now be deferred. We were told initially this would be rolled out in April 2020, but HMRC is suggesting this will now be launched a year or two later. We will of course keep you updated as more information is released and in the meantime strongly recommend that if you are not currently maintaining your records digitally, you consider doing so now so your business is MTD ready, please do contact me to discuss further.
Further information and workshops
CBW has a cloud accounting team who will review your current systems, make recommendations and guide you through this transition to ensure you are ready for these changes. We will be running monthly MTD workshops from July 2018, please visit www.cbw.co.uk/seminar-events for more information and to register your attendance, or please click here to speak to a member of the MTD or cloud accounting team.