Paper returns have long been obsolete, and now HMRC are discontinuing their online form moving towards a more detailed approach. Traditionally you, or someone on your behalf, would submit a summary of input and output tax on a monthly, quarterly or annual basis, as a result HMRC would not have access to the underlying data unless they requested it. With the rise of technology HMRC are now asking for the detailed workings to be submitted alongside the VAT return.
As of the 1 April 2019 HMRC require all VAT registered businesses to report VAT digitally, rather than use the online HMRC portal. This has to be done with additional software, and in most cases, is compulsory. This is the first step of HMRC’s ‘Making Tax Digital’ (MTD) initiative. The next step is to introduce other taxes including Self Assessment and Corporation Tax after April 2020 and we are still waiting on guidance on how that will work.
OS Accounting are cloud accounting experts and Making Tax Digital Ready. We have a range of solutions to make sure you are ready to submit your first VAT return using the new HMRC systems. We are Certified by Xero and Quickbooks as ready to go with their software, as well as being able to help you if you use Sage One, any desktop accounting product (like Sage 50 or Quickbooks Desktop) or are still using manual books and spreadsheets.
If you haven’t heard of Making Tax Digital, head over to our news post for more details to find more
We are proactively supporting clients in their move onto this new technology. Its a great time to update your accounting software, and there are alot of new and time saving technologies thanks to the cloud. If you need help transferring onto a new accounting system, or need to prepare for filing your VAT return, we have solutions that will have you up and running with minimal fuss.
For help with this new technologies please get in contact