AAT has produced a detailed guide to help accountants and bookkeepers prepare their clients for the first implementation phase of Making Tax Digital.
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Which software packages support the Making Tax Digital pilots 18 January 2019
If you are an agent and you sign clients up to the Making Tax Digital pilots you’ll need software packages that, depending on your needs, let you send Income Tax updates and submit VAT Returns to HMRC on their behalf.
You’ll need this software to keep records of income and expenses for Income Tax, or sales and purchases for VAT. If you’re already using software to keep records, check with your provider when the software will be ready to allow you to send updates and submit returns to HMRC throughout the year.
GOV.UK has recently updated and added to the list of Software suppliers with products for submitting VAT Returns as part of the Making Tax Digital pilot.
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Making Tax Digital for Business 14 February 2019
Most VAT-registered businesses with a taxable turnover above the VAT threshold (currently £85,000) are required to keep digital VAT business records and send VAT returns using Making Tax Digital-compatible software from 1 April 2019. HMRC’s ‘Making Tax Digital for Business – stakeholder communications pack’ provides information for stakeholders, who can use the contents to inform their own communications activity and key messages for their clients, customers and members.
The following questions have been added to the FAQ section:
What does the ‘soft landing’ period actually mean? Does it cover all penalties for MTD?
No. The ‘soft landing’ period only covers the digital links requirements as set out under 3.2 .1 Digital links in the VAT Notice 700/22. Businesses will have a ‘soft landing’ period to put in place digital links between software products where they use more than one product to meet their digital record keeping requirement. Businesses mandated to join Making Tax Digital for VAT from: • 1 April 2019 will have until their first VAT return period starting on or after 1 April 2020 to put digital links in place between software products • 1 October 2019 will have until their first VAT return period starting on or after 1 October 2020 to put digital links in place between software products
Are there any penalties for not complying with MTD? What happened to HMRC not coming down hard on those trying their best?
Yes. HMRC recognises that businesses will require time to become familiar with the new requirements of MTD. HMRC has been clear that during the first year of mandation it will not pursue record-keeping penalties where businesses are doing their best to comply with the law. But this does not mean a blanket ‘no penalties promise’.
The VAT Default Surcharge (DS) regime will continue to apply to safeguard VAT revenue, and other sanctions remain possible for deliberate non-compliance.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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