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Are you prepared for Making Tax Digital?

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01

May
TaxationJohn Dae 0 comments

The days of logging into the HMRC website and typing in the 9 numbers are nearly gone. Making Tax Digital method you need to keep digital records and report your VAT returns electronically the use of a well-suited software program.

Below are the answers to a few frequently asked questions

Does this have an effect on me?
If you're VAT registered or might be via way of means of 1 April 2022 then yes. If you intend to sign up for VAT after this, then you may be affected as quickly as you sign up. If you intend to deregister quickly then you could want to recall getting recommendations as to how this impacts you.

Where does it apply?
This applies for VAT intervals starting on 1 April 2022 however there are steps to be taken earlier than you hotel your first go back so that you must begin the system as quickly as possible.

What does it cost?
The MTD scheme itself doesn’t have a rate and you may signal yourself up online. Manual facts will now not be compliant so if this is your modern-day record-retaining method, you may need to alternate your system. There are plenty of software program companies to be had and you'll be capable of adapting spreadsheets, even though this could want extra software programs. If you already use the software program it could be that you are already able to be compliant.

What does keeping digital records mean?
Digital record-retaining doesn’t imply retaining a digital model of each report e.g. a test of each invoice, even though there may be advantages to doing this. It does imply you want to have digital facts of statistics together with the date of the invoice, the value, and the VAT rate.

What is the gain?
Making modifications for your record-retaining isn’t usually at the pinnacle of the to-do listing however in case you are required to make an alternate there are methods to make it gain you. These may be as easy as scanning all of your files to keep area however maximum will locate that it may have actual enterprise advantages together with extra correct reporting for control purposes. The most software program is able to do plenty extra than filing your VAT returns and will prevent numerous time.