Around 1.2 million businesses are due to file their first quarterly VAT return through Making Tax Digital (MTD).
If your business has a taxable turnover above £85,000, it must be registered for MTD.
With the first VAT return deadline looming, tax expert Mike Parkes of GoSimpleTax has put together his top three tips to navigate Making Tax Digital:
1) Digitally store your VAT records, now
Ideally, you should have started on 1 April 2019. But if you haven’t, it’s better late than never. Start keeping digital VAT records (you can use bridging software to help you with any old spreadsheet data). This will make submitting your VAT return via the new MTD regulations far easier, rather than rushing at the last moment trying to sort everything out.
2) Seek help and assistance if you need it
Contacting HMRC can be tricky, so make sure you have somebody else to contact for advice should you need it, especially as your deadline approaches. An accountant or software provider should be able to assist you with submitting your MTD VAT return and may also be able provide the information you might not be able to seek from HMRC.
3) Make use of bridging software
HMRC has allowed the use of MTD bridging software to make the transition to digital tax easier. Bridging software allows you to still use spreadsheets to log your VAT return, but it will enable you to translate that data and ensure it is compatible with HMRC’s MTD systems. It can also help keep you in line with requirements.
Bridging software should help make the transition from traditional filing to digital filing far easier.