Are you Prepared for Making Tax Digital for VAT?
With April 1st fast approaching and the end of the soft landing period for Making Tax Digital for VAT, we give a heads up to all those who still haven't made the jump
Below we answer some common questions asked by businesses over the past couple of years, as we unravel why MTD for VAT shouldn't be feared.
What is the soft landing period?
On April 3rd 2020, we learned that HMRC was extending the soft landing period for Making Tax Digital for VAT by 12 months to provide businesses more time to establish a full digital process for recording business figures and submitting a VAT return. This period will end on April 1st 2021 meaning any business that is registered for VAT and with a turnover greater than £85,000 must apply for and start using the new digital system being championed by HMRC.
How do I comply with MTD for VAT?
To comply with MTD for VAT, a full digital link between the software you use to record your business figures and HMRC must be maintained. This means figures can no longer be copied and pasted, and MTD compatible software such as Easy MTD VAT must be used to transmit them to HMRC.
Can I still carry on using a spreadsheet?
If you record your figures using spreadsheet software such as Excel, don't worry, you can continue to do so. The only change to your current system will be using bridging software such as Easy MTD VAT to submit the 9 box figures of a VAT return to HMRC.
My accounting software isn't MTD for VAT compliant, can I continue using it?
If your accounting software isn't MTD for VAT compliant, chances are you can still continue to use it alongside bridging software such as Easy MTD VAT. As long as the software can export the 9 box figures to an Excel spreadsheet or CSV file, you are good to go.
What is bridging software?
Bridging software such as Easy MTD VAT provides a digital link between your VAT figures held in a spreadsheet or an accounting package that isn't MTD for VAT compliant, and HMRC. The software maintains a digital link making you 100% compliant with HMRC's new rules.
Is it true that using bridging software will no longer be allowed?
This vicious rumour was spread by unscrupulous software developers wanting to drive more customers to their accounting software. HMRC gave their knuckles a rap for this blatant lie and have stated that bridging software such as Easy MTD VAT will continue to be a valid MTD for VAT solution.
You can read more about this here.
Why should I use Easy MTD VAT?
Here's a handful of reasons why you should use Easy MTD VAT as your MTD for VAT solution...
- 100% compliant with MTD for VAT.
- Install in seconds. Start submitting VAT returns in minutes.
- Compatible with VAT figures held in an Excel spreadsheet or a CSV file.
- First class and prompt support with a personal touch.
- Inexpensive... submit VAT returns from as little as £0.99 (your first VAT return is FREE).
- Has already submitted thousands of VAT returns to HMRC.
- Can be used by businesses, accountants and agents.
How do I get started?
Firstly, you need to head over to the HMRC website, log in to your portal then register for MTD for VAT. When your account is enabled you can begin using Easy MTD VAT to transmit your VAT figures to HMRC.
Download then install Easy MTD VAT, configure it for your business, grant authority to it then off you go... you'll be submitting your first VAT return in minutes! And if that isn't enough to get you making the jump to MTD for VAT today, we'll even allow you to submit your first VAT return without spending a penny!
Click here to find out more about Easy MTD VAT and why businesses have used it to submit thousands of VAT returns without changing the way they record their business figures.