Public beta announcement
This week on the 16th October, HMRC announced that the making tax digital pilot was being extended into public beta. This means that more than half a million businesses will be able to use software to submit Making Tax Digital (MTD) compliant VAT returns ahead of the new rules coming into force in April 2019.
Some not for profit organisations deferred
HMRC have deferred the mandation of MTD for a small number of categories, they announced;
“trusts, ‘not for profit’ organisations that are not set up as a company, VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (such as Government departments and NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users. We will be writing directly to all customers within this group to inform them before the end of 2018.”
Although they have deferred MTD for this small number of organisations, the functionality to file MTD compliant VAT returns will be in place prior to April. Organisations that fall into any of the above categories will not be mandated until the 1st October 2019.
Software choices published
There are now over 70 suppliers listed on the HMRC’s website who have demonstrated a prototype to HMRC. These companies are not yet ready to use now and just because your software supplier is on the list does not mean that you can join the public pilot. HMRC have helpfully provided a second list, which separates the wheat from the chaff and lists 23 companies that are ready for you to join the pilot. If your software provider is asking if YOU are ready for MTD, make sure THEY are ready by checking the list. Some of the more vocal providers on MTD are noticeable by their absence.
Ask your provider to join the pilot
Don’t wait until next year to think about Making Tax Digital. Ask your provider if they you can join the pilot. There is only a maximum of two quarterly VAT periods left before the mandatory changes in April. The only way to practice submitting MTD compliant returns is by joining the pilot.
My Digital Accounts provides a suite of MTD compliant solutions, whether you want to use a full accounting package or continue using your spreadsheets, get in touch now to discuss how you could benefit from joining the pilot scheme.
This weeks blog has been bought to you by Dan Moss