Once upon a time, using rather cinematic language, I introduced, explained about and discussed the implications of this new initiative. That was well before Christmas when the release date of April 2019 for MTD on our local screens still seemed similar to the Star Wars galaxy – a long time ‘to go’ and far far away! Well, as Yoda would say, “time to get ready it is”, as the force of HMRC’s long awaited MTD tax empire is about to strike back.
Like any good film review, let’s give you the basic story line:
- Starting from April 2019 VAT registered businesses with a turnover of over £85, 000 will have to register, with some exceptions.
- Accounting records will need to be digitally kept in a software product or a spreadsheet.
- VAT returns will need to be submitted to HMRC using functional compatible software that can access HMRC’s own platform in a seamless manner. This means that the software must be able to directly send the VAT information digitally and not be retyped into the HMRC system.
- The current reporting schedule for VAT won’t be changed and businesses will still make filings on the same quarter end that they currently have.
- Those businesses in the MTD net will not be able to access or use the HMRC’s online portal.
A bit like the Dark Lord himself, it all sounds a little scary. What exactly will it mean to those businesses that need to be MTD compliant? Is it time to put your hoodie on and grab your light sabre?
As long as you’re using compatible software such as Quickbooks, Sage and Xero, the transition should be pretty seamless. There are some behind the scene changes that will need to take place but once you are on the MTD platform making the quarterly returns will be the same as it is now for VAT returns. However, for those businesses who don’t use such software or even still keep records manually there is now little time to make the necessary migration to MTD compliant software; the storm troopers are coming.
At M:Power Accounting we are now MTD ready and authorised as an Agent Service provider. We will begin to move our clients to the new MTD platform and can assist with any changes needed to be fully MTD compliant. We also welcome new businesses that may need further help in meeting the obligations of MTD and we will ensure that all software and systems are in place before the April deadline.
So, sit back, relax and enjoy the film, which will certainly have plot twists before the happy ending that working with M:Power Accounting on MTD compliance will bring.
May the force be with us all…