VAT, Making Tax Digital And Sage 50
Are you ready for April 2019?
POSTED BY ALISON MEAD ON 27/08/2018 @ 8:00AM
As part of their Making Tax Digital plans to modernise the tax system, the Government is changing the way VAT registered businesses create and submit VAT Returns. This has affected Sage 50 ...
If you're using Sage 50, are you ready for Making Tax Digital for VAT?
copyright: anawat / 123rf stock photo (licensee)
You may have already noticed that you can no longer use Sage 50 to submit your VAT return if you are in Version 23 (2017) or below. So, what's changing?
As of April 2019, businesses above the VAT threshold of £85,000 are required to file their VAT returns electronically using accounting software, and are obligated to keep digital records of their transactions.
Manual submission through the HMRC gateway for VAT will no longer be accepted for most businesses. So, those of you currently logging into the HMRC and filling out the VAT return by hand will no longer be able to access this system from April 2019.
If your businesses is affected, the new VAT rules apply from 1 April 2019, and you must:
Ensure you have MTD for VAT compliant software
Start maintaining digital business records for the purposes of VAT
Sign up with HMRC for MTD for VAT
Start submitting your VAT Return through your compliant software
If you already have a Sage subscription for Sage 50 Cloud (50c) Accounts, then you already have access to the latest software.
Just make sure you have installed all the updates and you are running the latest version (at the time of writing in August 2018, this is version 18.104.22.168, but this will change). You can see your version number on the Help>About page of your software.
Regardless of the Making Tax Digital scheme, there have been some fantastic updates in the software recently, such as in multi-user systems not having to kick everyone out for error corrections, so this is a great opportunity to upgrade.
"Would you like to know more?"
If you'd like to find out more about how Making Tax Digital in Sage 50 will affect your business, do give me a call on 01604 420057 or click here to ping me an email and let's see how I can help you.
Until next time ...
If anything I've written here resonates with you, why not visit www.siliconbullet.com to discover how we can help you with accounts and IT support?
Alison loves bookkeeping. She has been helping clients to be better bookkeepers in Sage 50 for over 22 years and has more recently added Xero Accreditation to her list of skills.
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 running two network marketing businesses and is also a Regional Leader for 4Networking as she likes to keep busy.
You know what they say, if you want something done well ask a busy person!