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Update on Making Tax Digital for VAT

Posted: 6th March, 2019 Update on Making Tax Digital for VAT

Making Tax Digital for VAT becomes mandatory in April 2019 and HMRC is sending out letters asking businesses to sign up. At this point, we urge our clients to please not enrol with HMRC for MTD until we give you the ‘green light’ as there are a number of administrative steps to take before you can make a valid submission and HMRC does not offer any option to reverse your enrolment.

Our development has been recognised by HMRC and we've been added to its list of software suppliers who have VAT compatible products in development. We've achieved our goal of completing the initial development and testing by the end of February, and we're currently waiting for HMRC to approve our software. It's our intention to release the MTD for VAT module in March ready for the April deadline.

There are a number of things that you can do in preparation for MTD, namely:-

1. Check your VAT number is recorded correctly under the 'Company Profiles' section of your Interactive Cloud software.

2. Check your VAT quarters agree with HMRC; you can do this by logging into your HMRC VAT account and making sure it reconciles with the 'Maintain Financial Year' table within the Utilities section in Interactive Accounts.

3. Does the person submitting have an Interactive Cloud account and do they know their login details?

The new Making Tax Digital application is cloud based and is located in Interactive Cloud. Each individual in your practice involved in preparing through to submitting your VAT returns must have their own unique and valid Interactive licence.

4. Decide who needs access and the level of their access.

The new MTD for VAT application has four different levels of access:-

Please email our MTD licencing department to confirm the names of the user(s) who need access to the above. It's possible for 1 user to have access to all four levels.

5. Ensure you know your Government Gateway login details.

When you start submitting your VAT using MTD you'll need your Government Gateway credentials.

6. Volunteer for MTD now!

We're now looking for volunteers to help with our testing of MTD. This would involve you registering for Making Tax Digital now. Please contact Sarah Lear if you'd be interested.