Whilst Making Tax Digital (MTD) has been the law since the 1st of April 2019, no filing or record keeping penalties have been handed out to businesses that are doing their best to comply.
This is because the government recognises that businesses need time to become familiar with the new requirements.
The ‘soft landing period’ is coming to an end on the 1st of April 2020
Which means that those businesses above the VAT threshold will need to keep their records digitally and submit their previous quarter’s VAT return using MTD-compatible software by the deadline.
Failure to do so can result in penalties and interest charges from HMRC
If you’ve not started the process of Making Tax Digital, it’s important that you choose compatible accounting software as soon as possible. Our experience shows that it can take up to three months to acquire, implement and begin to use the new software.
At KA Farr & Co. we are Sage Partners, which means we can offer our customers Sage products at a discounted rate.
Many of these software providers offer free trial periods, so you can ‘try before you buy’.
Finding the right one for your business needn’t be a costly affair
No business will be forced to go digital for their VAT returns if they are unable to do so. Those that cannot adapt to the new service (due to age, disability, location or religion) must call the HMRC VAT Helpline to claim exemption.
If you’re unsure, get in touch
We understand that it might all seem a bit overwhelming, so why not speak to our specialist MTD advisors? We’ll take away your headaches and provide you with practical advice.
And even though we’re Sage Partners, we’re impartial and committed to finding the best solutions for our client’s businesses.
Give us a call on 01704 211 434 or drop us an email firstname.lastname@example.org.