General questions
The changes will apply to VAT customers for accounting periods beginning on or after 1 January 2023 The new system allocates a point for each late return. Points will last for 24 months and then expire – in the same way as points on your driving licence. There is also a ‘totting up’ process, and [...]
Bridging software remains compliant after the soft-landing period for Making Tax Digital for VAT ends in April 2021. The soft-landing period was extended to reduce the pressure of the Coronavirus pandemic on businesses, but at this time HMRC has not announced a further extension. So, what do you need to know about compliance after the soft-landing period?
MTDfVAT has been tested at HMRC and listed as MTD for VAT Compliant. Validate and submit VAT data to HMRC VAT dashboard view of obligations Excel and Spreadsheet friendly Integrate with bookkeeping software Import using CSV from legacy software User-friendly
You can sign up for MTDfVAT as a business to manage your VAT obligations under Making Tax Digital rules. However, if your turnover is over £5m or you manage a group of companies for VAT, you should consider BTCHub instead.
Once you have submitted your first MTD for VAT return, you cannot go back to the old VAT 100 submissions, even if you fall below the VAT registration threshold. The only way to leave is to deregister for VAT.
HMRC recognise a CSV file as an acceptable form of digital link between the record keeping software and the MTD submission software.
Almost any software can interact directly with HMRC for MTD, but it’s a lot of work to do so. It is acceptable to use bridging software to submit the MTD for VAT return to HMRC.
Any record keeping software can be used provided it keeps the individual transactions in digital form and can transfer the data in digital form to an MTD enabled bridging software.
HMRC recognise spreadsheets as an acceptable form of digital record keeping. This will be accepted beyond the soft landing period.
HMRC recognise bridging software as an important form of digital transfer, and it will be accepted for MTD for VAT returns beyond the soft landing period.