Making Tax Digital – January 2018 update
HMRC released draft guidance for MTD on VAT in December 2018.
Cloud Accounting (NI) attended an HMRC presentation last month (jointly facilitated by the ICAEW and the VAT Practitioners Group). HMRC have a very clear idea about how this will work in practice but judging from the questions asked that has so far not been communicated to professionals in practice.
The key point is that VAT records must be kept electronically and digitally linked. HMRC currently envisage multiple links before the actual electronic submission (involving multiple software packages). Ultimately, it will be the end of offline or manual adjustments (because there is no digital link) but that may be phased in progressively after 1st April 2019.
The development of functionally compatible software and API enabled spreadsheets to comply with MTD requirements will be the main objectives for Cloud Accounting in 2018 and 2019 and we will keep you informed of progress and any relevant developments.