Making Tax Digital For VAT Extended
You don't need to wait for next April ...
Posted by Alison Mead on 06/12/2021 @ 8:00AM
From April 2022, all VAT registered businesses will be expected to register for Making Tax Digital for VAT regardless of whether you are over the £85,000 threshold or not. According to Xero, over one million VAT registered businesses currently fall into this category ...
With Making Tax Digital for VAT, there is no point in waiting for April 2022, you can start now!
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Do you run one of these businesses? So, what does this mean to you as a business owner? Being registered for Making Tax Digital for VAT means you must, from April 2022, retain digital records and submit your VAT returns to HMRC.
"You must use 'functional compatible software' such as Xero or Sage!"
If you are already using accounting software that is MTD compatible then you are halfway there, and you will just need to inform HMRC that you are ready to submit MTD VAT returns. There is no point in waiting for April 2022, you can start now.
Even if you use an Excel spreadsheet then there are bridging options that mean your figures can be submitted compliantly, but you must not use copy and paste to create your VAT return and enter the figures, but you can use calculated fields.
"But if you keep paper records, you are going to have to change how you process your bookkeeping!"
Now, might be the perfect time to review your bookkeeping, check your methods are compliant with Making Tax Digital for VAT, and implement a new or improved system if they are not.
This is something we can help and support you with at Silicon Bullet, either by performing a review with you, or advising on the best way forward for your bookkeeping for your business.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about Making Tax Digital for VAT, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you.
About Alison Mead ...
Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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