With MTD for VAT becoming mandatory for all VAT registered businesses from April 2022 are you set up with the means to file your VAT returns directly from the software you use to record your accounts?
Prior to April 2022 only VAT registered businesses with turnover over the VAT registration threshold had to submit their returns through software. Software could be specific software such as Xero or a spreadsheet which automatically calculates your VAT figures and uses bridging software to report those figures directly to HMRC. Spreadsheets must have formulas to link information as figures must only be entered once with the totals being automatically calculated and transferred to other software which is able to meet the requirement for filing VAT via MTD.
If you aren't already set up with appropriate software or spreadsheets now is the time to plan how you are going to meet this requirement. Using specific accounts software makes sense because it is straightforward to record all your transactions, add a document to each transaction and the VAT return will calculate what is due automatically. As the bank transactions arrive in the software on a daily basis everything relating to your business will be included in your accounts and in the VAT return. The advantage of accounts software over spreadsheets is the removal of formula and input errors as the figures are already in the accounts software and no input is required.
Of course the transactions in your accounts and the figures in your VAT return are only as good as the knowledge the person has who is recording and checking them. If you don't have the accounts or VAT knowledge you need to get things right a bookkeeper can do it for you. Bookkeeping is not as costly as you might think and if it saves you being investigated by HMRC and receiving a fine for incorrect VAT returns then it is definitely worth paying for peace of mind.
If you would like help preparing for filing your VAT returns digitally from April 2021 give us a call. We can get your business set up on accounting software and manage your bookkeeping and VAT returns for you. We know what you can claim VAT on and what you can't and will ensure your VAT returns are accurate and submitted well in advance of the deadline so you know in plenty of time how much you will have to pay.
We guarantee we will give you peace of mind and time to work on other areas of your business.