The original MTD launch date of April 2018 was abandoned July 2017 when HMRC succumbed to pressure over the unrealistic timescales. The requirement for compulsory digital record keeping more generally and the submission of quarterly updates is now postponed until at least 2020. However, introduction of MTD for VAT purposes in April 2019 remains a tight deadline.
One of the main concerns for SME’s is the transition to software compliant with the MTD for VAT requirements. If you use HMRC’s online portal for your VAT returns, you need to adopt new methods, as from April 2019 the online portal will no longer be available. HMRC want businesses to use commercial software, but have accepted that many businesses use spreadsheets as their main recordkeeping tool.
If you’re not currently using commercial software you need to decide whether to take the plunge – and financial hit – and invest in compliant software and associated training, or to hang on and see whether HMRC’s proposals mean that affordable spreadsheet-based products emerge onto the market.
If you’d like to discuss options, contact MGroup Partner Darren Green on 01865 552925 or d.green@TheMGroup.co.uk