Do you have a business registered in the UK? If so, you need to know about the new rules coming in Spring 2019 related to VAT returns.
The UK government is modernising their tax system in a plan called Making Tax Digital (MTD). They are changing the way VAT registered businesses create and submit VAT Returns.
The changes will be implemented from April 2019. Businesses with a taxable turnover over the VAT threshold £85,000 will have to file their VAT returns electronically. This will be done using accounting software. Businesses must keep digital records of transactions.
Most businesses will no longer be able to manually submit VAT returns through the HMRC gateway.
What does it mean for my business?
If your business is affected, these rules apply from 1 April 2019, and you must:
- Ensure your software is compliant with MTD for VAT
- Start maintaining digital business records for VAT purposes
- Sign up with HMRC for MTD for VAT
- Start submitting your VAT Return through your software
What do I need to do?
The good news is that if you currently subscribe to Sage 50cloud Accounts and have v24.2 or above installed, your software is MTD ready.
If you are still using Sage 50 Accounts, it’s easy to switch to Sage 50cloud Accounts.
Does Making Tax Digital for VAT affect my business?
The changes under the Making Tax Digital for VAT scheme are compulsory for businesses that:
- Are VAT registered in the UK,
- Have a taxable turnover of more than the VAT registration threshold (currently £85,000)
You still need to sign up with HMRC and submit returns under MTD even if you already submit returns online from your Sage software or via HRMC online services.
How do I know if my version of Sage is compliant?
If you’re not sure which software version you have, to find out if you’re using Sage 50cloud Accounts:
- Open Sage 50. Click Help on the menu bar and then, About.
- See your Version Number under Program Details.
For More information on Sage 50cloud Accounts
Call Malcolm on (071) 9146815 or Email email@example.com