Hero background
Business Services

4 Helpful Tips for Implementing MTD for VAT

RJP LLP By RJP LLP
4 Helpful Tips for Implementing MTD for VAT

Making Tax Digital (MTD) is almost upon us, with the new VAT compliance service set to go live on 1 April 2019.  This is a key part of the government’s plans to make tax easier for individuals and businesses.

From 1 April 2019, all VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the MTD portal with HMRC meaning accounting records need to be maintained on accounting software and submit their VAT returns through the software. A small number of VAT-registered businesses with complex requirements have had their start dates deferred to 1 October 2019, to enable them to properly test the submission service before the deadline.

We have been working with a number of businesses who are part of HMRC’s pilot scheme and this early work has highlighted a number of issues that others might encounter.

Early issues identified with MTD

  • Once you have signed up to the scheme – either to participate in the pilot scheme or to register for the final live version – all VAT returns must then be submitted through the new MTD portal and not via the old Government Gateway. If you register early you must use the new MTD portal and cannot go back to the old version.

 

  • To use the MTD portal you must be using accounting software that is MTD compliant and checks should be completed well before the deadline to verify this with your chosen provider. If RJP prepare your VAT returns then we will do this for you. Although major software vendors are saying that their software is compliant, we have found a few instances where this is not the case.

 

  • Some clients have been receiving a rejection or error message when submitting their returns online via the portal, but from our experience these are mistakes with HMRC. Clients who are in the pilot scheme have been receiving rejection notices only to find that they have actually been accepted.

 

  • In the early stages of implementing MTD, some clients may want to delay upgrading their accounting software or they may prefer to use manual records in the short term. In either of this situations RJP can help you, because we have access to HMRC approved software which allows us to submit your VAT return directly as an agent acting on your behalf. This may be a simple solution for any businesses who are finding the preparation stages too complicated.

 

For further information, HMRC has published a helpful  VAT Notice which explains the rules for Making Tax Digital for VAT and about the digital information that must be kept.

If you are experiencing have any issues regarding MTD, please do get in touch with us by emailing accounts@rjp.co.uk or contact Ben Simper.

How to get onboard with RJP
1
Talk to us
Have an initial discussion with a member of the RJP team to identify ways we can enhance your business's growth with our comprehensive support and strategic advice.
2
Hassle-free migration
Choose RJP and we'll smoothly manage all transitions, handling paperwork, coordinating with your current accountant, and ensuring no deadlines are missed for a worry-free experience.
3
A pathway to growth
Finally, we will send you the required documents to sign and return, leaving you to continue leading your business, backed by our abundant, responsive advice and support.
Here’s what our clients have to say
Hear directly from our clients about how RJP's personal, straightforward approach has made all the difference in their business and personal success.
"I just wanted to drop you a short note to say how grateful I am for the support that RJP has provided over the past 4 weeks while our Financial Controller was away. I struggle to comprehend how much work your staff get through during their weekly visits and they are always a pleasure to have around the office."
"I wanted to write and express our gratitude for your help and hard work in getting Probate through and settling all the taxes. I am so pleased that we selected RJP, as your professional help and updates throughout this process have been invaluable. If at any time in the future Probate assessment may be needed, you will be our first port of call. Once again, many thanks to the whole team."
"I would like to take this opportunity to thank you very much for the amazing job you have done navigating us through this whole process. My family and I also really appreciate the care and compassion demonstrated by you and your team in every dealing. Our thanks to everyone."
"Just a quick e-mail from me to thank you for achieving the target for producing the draft accounts – it is very much appreciated and gives a first class impression of your firm. Many thanks."
"RJP provide our company with a complete service which takes the stress and strain away from the day to day running of our accounts! Their understanding of our business and their patience and advice is invaluable."
cta background
Get the latest tax tips to your inbox every month


    faq background
    FAQs
    What services can RJP offer to help me understand how my business is truly performing?
    At RJP, we understand that keeping a finger on the pulse of your business's health is crucial. That's why we offer management reporting services—think of them as a regular health check for your company. These insights show you the real-time performance of your business, helping you make informed decisions to nurture and grow your enterprise.
    I'm keen to expand my business. How can RJP help me with that?
    We love seeing your business flourish! Growth and improvement are at the heart of our practical advice. From the ins and outs of everyday operations to big-picture strategic moves, we're here to offer clear, actionable steps that can propel your business forward.
    Audits and compliance can be a headache. How does RJP ease this process for business owners?
    We know dealing with the issue of compliance and auditing can be less than thrilling. That's exactly why we're here—to handle the complex stuff so you don't have to. We offer comprehensive compliance services, ensuring everything is up-to-date without you having to wade through a sea of regulations.
    I've heard about tax relief schemes but don’t know where to start - can RJP guide me?
    Absolutely! There's a world of opportunity out there to support your business financially, and we're well-equipped to be your guide. We can help you understand and access HMRC’s tax relief schemes that are relevant to you and your business, making sure you're not missing out on any potential benefits.
    If I have a question or need support, how responsive is RJP to my needs?
    When you need us, we're just a call or an email away—no question is too small or too large. We're known for our quick responses and our fixed fees mean you can reach out without worrying about unexpected costs. Plus, we always keep things simple and straight to the point. We're not just your accountants; we're part of your team, ready to support both your business and personal needs.