The HMRC has recently launched a second pilot scheme for Making Tax Digital for VAT (MTD for VAT).
There has been more than half a million UK businesses invited to test the system ahead of the intended role out of MTD for VAT on 1 April 2019. Organisations with a taxable turnover above the VAT registration threshold of £85,000 will need to keep digital records as well as provide quarterly updates to HMRC for VAT purposes using API compatible software. There are a few ways Microsoft NAV users can prepare for Making Tax Digital as well as how Microsoft GP users can prepare. HMRC will look to extend the pilot to most other business types within the upcoming months with it initially being available to businesses with updated and straightforward financial affairs.
There will be a MTD six – month deferral to some organisations with more complex requirements such as non-profit organisations not set up as a company, trusts, public corporations, local authorities, traders based overseas, VAT groups and VAT divisions. Those that are public sector entities will be required to provide additional information on their VAT return whilst those who need to make payments on account and annual accounting scheme users are also covered by the MTD referral until 1st October 2019.
Have you began your journey towards becoming Making Tax Digital ready? Find out the options and solutions that Advantage have available for Making Tax Digital here and get ahead of the curve.
*Disclaimer* Advantage is an ERP, CRM and Managed Services IT firm, not a law firm. The information provided here is for general guidance purposes only. It should not be taken, nor is it intended as, legal advice. Please make sure you conduct your own investigation into Making Tax Digital and where appropriate seek out the advice of a legal professional.
To find out more about how Advantage can help your business either upgrade your existing Microsoft Dynamics GP solution, upgrade your existing Microsoft Dynamics NAV solution or another Microsoft Dynamics 365 Business Central solution please get in touch with Advantage today.
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