VAT Registered businesses, the MTD deadline is here!
- VAT-registered businesses must use Making Tax Digital compatible software for their VAT returns from 1 November 2022.
- What is Making Tax Digital (MTD)?
- Why is MTD deadline relevant now?
- What do I need to do to become compliant before the MTD deadline?
- How do I sign up for MTD?
- I want to use Zoho books for MTD compliance, what do I do?
The MTD deadline is now for VAT-registered businesses to be Making Tax Digital compliant!
VAT-registered businesses must use Making Tax Digital compatible software for their VAT returns from 1 November 2022.
If you haven’t already seen a reminder then this is it… HM Revenue and Customs (HMRC) is reminding businesses that from Tuesday 1 November 2022, they will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns.
By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.
What is Making Tax Digital (MTD)?
Making Tax Digital is a government campaign to help businesses reduce time (and money) spent on tax submissions by getting it right first time. With software in place to help reduce errors and make it easy to manage your tax affairs going digital can really help your business grow.
MTD’s aim is to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow.
The campaign has been running since 2018 and more than 1.8 million businesses have collectively submitted more than 19 million returns through MTD-compatible software at the time of publishing.
Why is MTD deadline relevant now?
On Tuesday, 1st November, businesses who files their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account (unless HMRC have agreed they are exempt from MTD).
If you do not file your VAT return through MTD-compatible software, you may face a penalty. Even if you already keep digital records you must check your software is MTD compatible and sign up for MTD before filing your next return.
Zoho Books is suitable for businesses and agents, it is record-keeping software and (amongst may other features) can;
- Submit VAT returns,
- View submitted VAT returns,
- Check what VAT you owe,
- Allow you to view your VAT payment history.
There is even a free version of the software to help get you started. If you’d like to know more or have some questions we would be happy to have a chat.
What do I need to do to become compliant before the MTD deadline?
If you haven’t already signed up to MTD, or started using compatible software, to meet the MTD deadline, you must follow these steps now:
- Choose MTD compatible software, a list can be found here or learn more about MTD compliance, Zoho Books here.
- Check the permissions in the software – once your business has allowed it to work with MTD you can file VAT returns easily, meeting MTD requirements.
- Keep digital records for current and future VAT returns – find out what records need to be kept here.
- Sign up for MTD and file future VAT returns using a MTD compatible software, like Zoho Books.
How do I sign up for MTD?
HMRC have put together a great guide for signing up to MTD, but if you want to know specifics for your business get in touch with Goldstar and we can check you are good to submit on the 1st November!
I want to use Zoho books for MTD compliance, what do I do?
If you’ve go this far in our blog then you’re on the right track. Zoho software is secure, reliable and offers a great ROI. Zoho have a network of partners throughout the UK to give you the best advice and help integrate Zoho solutions into your business.
But Goldstar are not just an Advanced Zoho Partner, we are a Zoho Valued Consulting Partner for Zoho Books. As such we have a dedicated Accounting specialist, Vicki, who can help with any aspect of accounting. Vicki is one of the first authorised experts in the UK and will be able to help make your MTD transition as seamless as possible, and with very little time until the MTD deadline it’s probably best to get in touch and discuss your needs.