In case you missed our September and October newsletters which both featured articles about Making Tax Digital (MTD), here's a reminder of how we're preparing for HMRC's new scheme.
You might be aware that from 1st April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold (currently £85,000) will be required to use HMRC’s MTD service to keep records digitally and use software to submit their VAT returns.
We're busy working closely with HMRC to put the necessary integration in place to support the MTD programme ahead of the April 2019 deadline. The enhanced Interactive software will give authorised users access to a new MTD digital screen where they'll be able to review VAT liability for the current and past VAT quarters in the familiar nine box format. Users will be able to submit their VAT returns from this screen.
The new functionality will be viewable on tablets and mobiles as well as desktops, allowing submission on the move with an internet connection.
Users will also be able to access reports from this new MTD screen which will enable them to drill down into each box to see and review the detailed transactions making up the return. Where necessary, the new screen will allow users to make manual adjustments to relevant fields and for those adjustments to be logged for review at a later date.
The new MTD functionality will accommodate practices wishing to appoint agencies such as Quill’s Pinpoint outsourced legal cashiering service or the practice accountant who can prepare the VAT return, notifying a key member of staff at the practice that it’s ready to submit.