A shortcut guide to MTD for agents worried about readiness
The deadline for being ready for Making Tax Digital is fast approaching but Onkho Chief Evangelist Susan Rahman says "it's no big deal". Here's her bare bones shortcut guide with headlines and some very simple practical advice that you can act upon straight away.
Which clients are impacted?
All businesses that are VAT registered and have turnover in excess of £85,000.
What do impacted clients have to do?
Impacted clients will have to:
- Submit VAT returns using HMRC's new MTD service; and
- Maintain digital records to support their VAT calculations.
What do impacted clients need?
Impacted clients will need software to record their transactions, generate their VAT return and submit the VAT return using HMRC's new MTD service; and
How are agents impacted?
Agents need to:
- Make sure that they (or their clients) have software that can use HMRC's new MTD service; and
- Register to use the new MTD service. This is not the same service that is used today to submit VAT returns electronically.
What are the deadlines?
All impacted clients must be recording transactions digitally from 1st April 2019.
For each client, the first VAT return that needs to be submitted using HMRC's new MTD service will be the one for a VAT period that starts on or after 1st April 2019. That means there is a different deadline, depending on how often a client submits their VAT return. For details, read our "Keep Calm and Prioritise" blog post here.
What is the real challenge?
MTD does not change the way that VAT is calculated or how often it is submitted so there is no impact there. This is a process challenge - making sure that agents and their impacted clients are ready on time. Once that's all done, it's business as usual...just as it is today. MTD does not change the work that agents do.
To help you accelerate your preparations, read our "10 Steps to MTD Readiness" blog post here.