Newsletter Summer 2019

Start right for MTD

Under the Making Tax Digital (MTD) rules, businesses must use software to submit their VAT returns unless their annual turnover is less than £85,000.

If you have acquired new accounting software to comply with MTD for VAT, it’s worth checking whether it’s been set up to reflect the circumstances of your business. For example:

Before you submit your first VAT return using your new software, review the draft return for obvious errors and inconsistencies. We can help you with that.

Penalties arising from inaccurate VAT returns apply at up to 100% of the VAT underpaid as a result of a careless or deliberate error. A problem with setting up new accounting software may be accepted as a reasonable excuse for submitting a VAT return containing an error, but you need to correct any mistakes as soon as they are discovered.