Are you ready for the 7th August? - Wright Vigar
 In Advice, Blog, News, Tax Tips

You should all now be aware of MTD and that any VAT-registered business with a turnover above the £85,00 threshold is legally required to record their books and file VAT returns digitally, through MTD compliant software.

The initiative is designed to make reporting simpler and more efficient for tax payers. Around 1.2 million business were affected by this change and should now be looking to submit their first mandatory VAT return, using this software, dated 30 June by 7 August.

For those paying via direct debit, you must be registered by 27 July to allow the seven working days required by HMRC to transfer the existing direct debit to the new system in time for the first submission. Otherwise you can register up to three working days before the deadline. However, HMRC are expecting a large rush to submit and are therefore advising to sign up before the first week in August.

With around 10,000 companies registering daily, HMRC have experienced numerous issues with their tax services. This means you may not be able to connect or register in the final days before the due date, reiterating the importance to be ahead of the game. However, HMRC have said for those businesses who are doing their best to comply, there will be no filing or record keeping penalties issued.

If you require any support surrounding MTD please get in touch with one of our experts today.

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