AAT launches software guide to Making Tax Digital
19 Oct 2018
The Association of Accounting Technicians (AAT) has launched a detailed guide to help accountants and bookkeepers prepare clients for the first implementation phase of Making Tax Digital
19 Oct 2018
Making Tax Digital for VAT will be mandatory for all VAT registered entities with an annual VAT-able turnover above £85,000, the current compulsory registration threshold from 1 April 2019, when they will be required to keep a digital record of their VAT transactions and file via HMRC accredited software.
There will be a 12-month ‘soft-landing’ period to ease the introduction of Making Tax Digital for VAT, when HMRC will be relaxing its conditions of compliance, AAT notes. For VAT periods commencing between 1 April 2019 and 31 March 2020 businesses will not be required to have digital links between software programs (VAT Notice 700/22). HMRC will also be more lenient with penalties for late filing during the first year.
The 30-page AAT Making Tax Digital: software guide, includes useful checklists and information about software providers, compliance issues and help with how to communicate this major tax overhaul to clients.
It includes information about software bridging, accounting, specialist and self-service MTD-compliant software, as well as feedback from accountants who have taken part in the HMRC trials to date.
Earlier this week HMRC announced that the Making Tax Digital for VAT trials were to be extended to a wider audience, with up to 900,000 companies and sole traders now eligible to sign up for the trial. However, some entities, such as partnerships, new VAT registrants and complex groups will not be eligible for the trial.
Andrew Williamson, director of marketing and commercial, AAT said: ‘It’s going to be crucial for accountants and bookkeepers preparing for the Making Tax Digital roll-out to have strong engagement with their clients over the coming months to ensure they are well aware of what the new reporting requirements mean to them.
‘This guide is a wide-ranging overview that will enable our professional members and the wider accounting industry to make informed decisions about software solutions that will be best for their business, and help ensure they are fully compliant in their own right.’
Report by Sara White