Have you been left befuddled by the new VAT registration process for MTD?
If so, you’re not alone.
We’ve been hearing from accountants and others in the industry that confusion over HMRC account registrations is hindering the first digital VAT submissions.
And, with the deadlines so imminent, this is potentially a big problem.
The first quarterly submission deadline is 7 August. Those Firms paying by direct debit must register by Monday 29 July.
Some 600,000 out of the 1.2 million businesses affected by the MTD rules (those with an annual turnover above £85,000) have registered – meaning about half hadn’t when these official HMRC figures were released on 11 July.
So, back to the problem. What is it?
Well, simple really. Except it’s not for many who are attempting registration, and that’s the issue.
There are two sets of registration:
• An agent services account
• Registering individual businesses for MTD
Perhaps this explains some of the confusion.
Accountants appear rather baffled about where to go to carry out the necessary steps, as well as what order to do them in.
We’ve got a simple to follow set up guide that is going to help you overcome this obstacle. It contains a detailed three step process. However, here’s a precis:
2) Linking your Agent Services Account with your clients
Once you have your new account you will be able to link your existing client relationships for VAT to these new credentials. Again, it will not remove the client authorisation from your existing credentials. This mapping process is carried out in the same government web screens and is currently not possible via software.
3) Registering clients for MTD
Each business must register for MTD. This is also done via government web pages. Your clients can register themselves for MTD for VAT or you can register them. The process must, however, be carried out one client at a time because personal details have to be entered.
Please do check out the guide in full and we’re sure you’ll be on your way to successful compliance.
Still want more support? Speak to our MTD experts. Email [email protected] and one of the team will be happy to call you.