If you're a regular reader of our farming newsletter, then you may remember our article from the last edition about Making Tax Digital (MTD) for VAT. This is a final reminder that from April 2022 all VAT registered businesses must file their VAT returns in an MTD compatible way.
What is MTD?
If you don't already know, MTD is a key part of the Government's plans to make it easier for business and individuals to get their tax right and keep on top of their affairs. The first phase was rolled out in April 2019 and now we're onto phase two.
For those of you who aren't already affected by MTD for VAT (VAT registered with taxable turnover under £85,000), your first MTD VAT return will be for your first full VAT period after 1 April 2022.
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Monthly VAT returns = ME April 2022
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QE Mar/Jun/Sep/Dec = QE June 2022
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QE Jan/Apr/Jul/Oct = QE July 2022
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QE Feb/May/Aug/Nov = QU August 2022
How you currently prepare your VAT return could indicate whether you are MTD ready. The following methods will not be MTD compatible:
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Use of pen & paper
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Use of out of date, unsupported software
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Use of spreadsheets (without a bridging tool)
If you're still using any of the above methods to file your VAT and don't have a plan for MTD, then please get in touch with Margaret Goodchild on 01768 864466.
Are you already using Cloud Accounting? If so, have you considered Dext to save time when preparing your VAT returns?
Dext (formerly Receipt Bank) is an app which you can download onto your smartphone. Within the app you can take photos of your invoices which can then be automatically uploaded into your Cloud package, therefore saving you the time of having to manually input data.
Dext also attaches a photo of your invoice into your Cloud package which we can then access, meaning you don't need to send in your bag of books at the year end.
If this sounds like something that would be of interest to you, please get in touch with your usual Dodd & Co contact to discuss.
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