Making Tax Digital for VAT applies to UK businesses exceeding the £85,000 threshold. A software solution is required to process digital records and create digital returns to be submitted via HMRC’s API from April 2019 (or October for those with complex requirements). Digital links must be implemented the following year.
Read our report on Attitudes and Approaches to Making Tax Digital, produced in conjunction with Accountancy Age, and discover how tax professionals are preparing for the new legislation and their views on the wider changes happening in the industry.
Majority required to submit VAT returns via HMRC API. Soft landing period begins. Deferred organisations to begin prefiling and stress testing.
Deferred mandation for 3.5% of organisations. Organisations with complex VAT requirements must comply with HMRC's digital submission mandate.
Majority must have full digital links in place from source-to-submission. End of soft landing period. New penalty regime in place.
Deferred organisations with complex VAT requirements must have implemented full digital process. End of soft landing period.
MTD for VAT is the latest in a string of global regulations (CbCR, BEPS, CRS etc) and signals HMRC’s ambition to become one of the most digitally advanced tax administrations in the world. The exponential increase in legislation has seen a sharp rise in reporting requirements and a demand for greater transparency to support granular reporting and audit.
Compliance workloads have increased, forcing businesses to reappraise how they use their resources and to automate manual processes. Yet adoption of technology has been piecemeal. MTD sets a minimum bar for the automation of the tax process and provides an opportunity for the business to become more efficient and productive.
Still reviewing your MTD for VAT requirements for 2019 and 2020? Why not sign up for our Demystifying VAT webinars? Issues explored include the soft landing period and digital link requirements, how you can transition cost-effectively, and how to future proof your compliance.
Tax Systems customers make up 43 percent of the FTSE 100 and 23 of the top 25 accountancy firms. We have been working with HMRC for over 25 years on tax compliance and are an approved supplier for MTD for VAT. We believe there needs to be a gradual transition to meet evolving compliance demands and have developed a four step process that benefits and futureproofs the business.
We have developed AlphaVAT, a compliance suite comprising of three modules, which is specifically designed to allow businesses to meet the challenges of MTD for VAT.
Uses digital records and the HMRC API to create a digital VAT return in compliance with requirements for 2019.
Implements digital links between digital records and the submission software in compliance with requirements for 2020.
Manages complex VAT requirements (e.g. large volumes of reports) for VAT groups and partial exemption.
What to include in your selection criteria when migrating to MTD for VAT.
See below for more information on optimising data collection, automation of your processes, and guidance on selecting your MTD for VAT solution.
Lloyd Bristow explores how AlphaBridge, our MTD for VAT compliance solution, simplifies the digital submission of VAT returns.
Lloyd Bristow showcases how AlphaVAT, our MTD for VAT solution, enables 2019 and 2020 compliance requirements.
Our whitepaper on how to overcome the challenges associated with MTD for VAT compliance.
Data collection is now fundamentally changing. We look at the pros and cons of different approaches.
Find out how you can pre-test the MTD for VAT submission process to familiarise yourself with the process before you commit.
Consider the options open to you when migrating to MTD for VAT and what to include in your selection criteria.
How to ensure today’s MTD for VAT solution can cope with the demands of tomorrow’s regulation.
Our customer insights from a recent Customer Survey about the challenges and drivers of automation for Corporation Tax.
If you would like to have a one-to-one demonstration of our MTD for VAT compliance solution, call us or email us with your requirements.