Making Tax Digital (MTD) is an HMRC initiative to move taxpayers to a fully digital tax system. MTD for VAT will be implemented from April 2019 with income tax following in ‘2020 at the earliest.’
MTD for VAT will mean a fundamental change in the way you meet your VAT compliance requirement.
The key practical issue is that VAT returns will no longer be submitted to HMRC by completing the VAT return online. Instead, VAT data will be sent to HMRC using ‘functional compatible software’. Functional compatible software must be capable of keeping and preserving records in digital form, creating a VAT return from the digital records and submitting this data to HMRC digitally.
So, for VAT periods starting on or after 1 April 2019, all barristers with turnover exceeding the VAT registration threshold will need to keep and maintain their accounting records in accounting software to be able to submit a VAT return.
We can provide support in helping meet this new compliance requirement from providing you with appropriate functionally compatible software and training on its use to a VAT book keeping service.
Place Campbell are a Xero Partner and we can set up a Xero subscription for you tailored specifically for barristers from £9+VAT per month, so that you can maintain your own accounting records in the software.
We also recognise that for many barristers, maintaining accounting records is something that they will not have the time to do and we therefore offer a MDT VAT book keeping service at a fixed cost of £100+VAT per quarter (£75+VAT per quarter for Place Campbell clients). The quarterly fee includes the full cost of the £9 per month version of Xero. There is a one off set up fee of £50 (FREE for Place Campbell clients).
If you want to discuss the requirements of MTD for VAT and how we can help you, please contact us.