With all the buzz about Making Tax Digital (MTD) for VAT in the small business world you might be beginning to worry about what it means for you. Here’s a one-minute walkthrough to put your mind at ease.
Who will MTD for VAT affect?
Businesses with VATable sales above the VAT threshold. If your business’s turnover is below this and is voluntarily registered for VAT you can choose to take part, but you don’t have to.
What is MTD for VAT?
Under MTD for VAT you’ll have to record all your business transactions affected by VAT digitally and file VAT returns to HMRC using compatible software. If you already use FreeAgent, rejoice! We’ve been working closely with HMRC to ensure that you won’t notice much difference to our current VAT filing process.
What do I need to do?
Get up and running on MTD for VAT-compatible software. If you’re already using FreeAgent, great! If not, don’t worry – there’s still time to get sorted. Why not start with a 30-day free trial?
When does it begin?
MTD for VAT begins on 1st April - no joke! If your VAT accounting period spans this date, you’ll have to submit the following quarter’s VAT return via MTD. To find out more, read our blog post on MTD for businesses with an accounting year that doesn’t match the tax year.
There you go: MTD for VAT explained in one minute! Want to get your business ready for April’s deadline? Find out more about our MTD for VAT-compatible software.
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.