Making Tax Digital for VAT Registered Businesses – What You Need to Know
Making Tax Digital for VAT has been compulsory for VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000 since April 2019.
However, since November 2022, all VAT-registered businesses, regardless of their turnover, must comply with Making Tax Digital (MTD). This includes those who have voluntarily registered for VAT but fall below the £85,000 threshold.
What is Making Tax Digital for VAT?
In simple terms, Making Tax Digital (MTD) for VAT means that VAT records must be kept digitally and VAT returns must be submitted using MTD-compatible software that connects directly to HMRC. These rules have been in effect for all VAT-registered businesses since April 2022.
HMRC no longer accepts manual or old-style online VAT submissions. Returns must now be filed through compatible digital software.
You can find a current list of the records that must be kept digitally on the Gov.UK website.
Understandably, many small business owners still feel overwhelmed by the shift to digital, especially if they haven’t yet transitioned to compatible software. With limited time and resources, navigating the options and understanding what’s required can be daunting.
How Maynard Johns Can Help
If you’re unsure where to start or are worried about whether your current systems are compliant, Maynard Johns is here to support you. We can guide you through the process, help you choose the right software, and ensure you’re meeting all MTD requirements with confidence, so you can focus on running your business.
Making Tax Digital support and services
Choosing the right software
We can help you choose the right software. If you are not yet using MTD compatible software, the thought of choosing the right one can instantly bring fear and confusion. There are so many to choose from and different ones suit different business requirements.
You may be a business with employees and need to ensure your MTD software has payroll features. Or you may be a business that needs your MTD software to integrate with other third-party software you are already using.
Then you have the choice of whether to use a free or paid version of the software. Whilst you may be tempted to go for the free version, this may not have the best features for your business and cost you more in time, effort and stress than choosing a cost-effective paid option.
Whichever you choose, it must be recognised by HMRC.
Maynard Johns Chartered Accountants will work with you to determine which Making Tax Digital software for your VAT-registered business is the best choice for your individual needs. We can also help you find a solution that has useful features to help your business grow should you wish with up-to-date information to make informed business decisions.
Making Tax Digital training
It’s one thing to find the right software, but it’s another thing to try to use it! Time is a huge factor here and whilst most software has training guides, mistakes can be made. At Maynard Johns, we have dedicated staff to support you whatever your learning style or budget.
Training can be provided on a tailored one-to-one basis, or group training can be provided.
We will train you how to:
- Personalise and tailor the software to your business needs
- Integrate the software with any third-party applications you already use
- Import existing contacts
- Set access levels for users in your business
- Use the software to upload documents, receipts, etc so no more paperwork needs to be kept
- How to use shortcuts to keep your record-keeping time to a minimum
- And much more …
To see the full range of training we offer, visit our Xero Training page, which can also be adapted to alternative software providers.
Making Tax Digital for VAT support services
Whilst you may be set up with the correct software and understand how to use it, there may be times when you need additional support with Making Tax Digital for your VAT-registered business.
This includes:
- Dealing with HMRC if any questions arise.
- Helping with the completion and submission of your MTD returns
- Sending you automatic reminders for things such as filing deadlines
- Creating reports for you to be able to review your business and plan ahead for the future. These reports can include:
- Stock levels
- Credit Control
- Profit Margins
- Top-selling items
- Top Suppliers
- Cash balances
Done for you Making Tax Digital
If you prefer, we can handle everything for you and take the hassle away, allowing you to focus on your day job.
You hand over everything to us at Maynard Johns, and we will ensure that your business is compliant with Making Tax Digital for VAT-registered businesses and that all filings are completed on time.
Our done-for-you service includes a personal account manager who will get to know you, your business, and your specific requirements. You will always be able to speak with their team, which will be able to deal with any questions or requests you have quickly and efficiently.
We offer a range of fixed-priced packages, ensuring you never incur any unexpected costs.
You can find out more about our fixed-priced accounting packages for making tax digital by clicking the button below.
Find out more about Making Tax Digital for VAT
Our expert team is here to provide tailored advice and support for all your Making Tax Digital for VAT requirements.
Contact us today to find out about the array of services we provide.
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