with the eventual succumbing of HMRC to the inevitable deferral of implementing MTD, we should briefly remind people where they currently stand with their upcoming responsibilities under MTD.
April 2019 – businesses trading with turnover above the VAT threshold (£85000) will have to submit their VAT reports online, which shouldn’t make too much difference to most businesses who already submit their VAT online, however, HMRC have said no free software will be made available to agents, so businesses will need to either submit themselves through their online account with HMRC, or through agents using their commercial software packages.
April 2020 – most businesses, with some exemptions, will have to submit quarterly, and year end MTD returns of Income, Expenses and Profits. The same submission exclusions as above will apply, and although HMRC say they will accept spreadsheets, these will need to be matched to software for conversion and submission to HMRC.
So, all clear for now? not really! the preparations for MTD will increase as we get closer to the current deadlines, and pressure will be on Businesses and their agents approaching the first submissions when demands will be high, our advice is to prepare early in case sufficient advice and training are overstretched at this time.