You may have heard that the rules around filing your VAT returns with HMRC are changing, with the introduction of Making Tax Digital. It might sound a bit scary, but don’t worry, we’ve got your back and will make the switch as easy as possible.
From the 1st of April 2019, VAT-registered businesses with a taxable turnover above the VAT threshold will no longer be able to use the HMRC website to submit VAT returns. If you’re using FreeAgent, this won’t be a problem, as you can submit your VAT returns to HMRC with a simple push of a button!
Getting set up
Our Making Tax Digital guide is a great place to start but basically there are two important steps:
- Sign up for MTD on HMRC’s website. You’ll receive an email within 72 hours to confirm that you can submit returns using FreeAgent.
- Connect your FreeAgent account with HMRC to allow FreeAgent to file VAT returns on your behalf.
And it’s really that simple. Once you’re set up you’ll be able to file your VAT returns to HMRC in a single click.
This new VAT filing functionality is now live in FreeAgent. You don’t have to use Making Tax Digital filing until your first VAT return starting on or after 1st April becomes due, but we’re ready today.
Disclaimer: The content included in this blog post is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this blog post. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.