MTD for VAT – Are you ready?

From April 2019 VAT registered businesses and organisations with taxable turnover above the VAT threshold of £85,000 are required to maintain their accounting records digitally in a software product or spreadsheet and also submit their VAT returns to HMRC using compatible software.

Here are a few programmes that are compatible with MTD for VAT:

  • Xero
  • Sage 50c version 24 or above (if you have made a one-off payment to Sage for version 24 you will need to upgrade to a monthly subscription or buy the MTD for VAT add on)
  • QuickBooks
  • FreeAgent

Xero is great software as it is cloud-based software which includes features which could actually save you time, such as invoicing and bank feeds (with rules that can be set to automatically post bank transactions). We offer training on this software which we would typically expect to take a maximum of 4 hours at £50 per hour. As this is a cloud solution we would also be able to offer ongoing support remotely.

For a full list of compatible software, simply click here

The requirements do not apply to VAT registered businesses with a taxable turnover below the VAT threshold (e.g. those that have registered voluntarily) however they may wish to voluntarily submit their returns through the software if they wish. Voluntarily registered businesses that have not opted into MTD for VAT will need to continue to monitor their turnover to establish when they need to start complying with the MTD for VAT requirements.

Once a business is required to comply with the MTD for VAT requirements, the obligations continue, even if the taxable turnover of the business subsequently drops below the VAT threshold.

If you need to start filing your VAT returns through compatible software, we offer discounts when you purchase subscriptions through torrwaterfield for either Sage or Xero, the discount we offer is 5% of the online subscription price.

We also offer our in-house bookkeeping service who can do all of this for you. If you would like to do this then please get in touch with our office to discuss this in more detail.

If you would like to discuss your options, please do not hesitate to contact us on 0116 242 3400.

James Yarnall, Accounts & Tax

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