Martin Aitken & Co Ltd News & Developments

Martin Aitken & Co: news and comment
3 minutes reading time (689 words)

MTD for VAT: Are you ready for 1 April 2019?

MACO project

If you will be using the MTD system from 1 April 2019, you must use approved accounting software which will enable you to send regular updates to HMRC.

You should check with your existing software supplier if they will be MTD ready, or get in touch with us to discuss your options.

From 1 April 2019, all UK businesses that are VAT registered and above the £85,000 VAT threshold will be required to maintain a digital record of their VAT transactions and submit VAT returns to HMRC using MTD compatible software

Businesses that are VAT registered but fall below the VAT threshold will not have to register for MTD just yet and can continue to submit their VAT returns to HMRC as normal until April 2020. 

If you will be using the MTD system next year, you must use approved accounting software which will enable you to send regular updates to HMRC.  

MTD for VAT information session 13 February 2019, 9am-10.30am, Martin Aitken & Co Glasgow office >find out more

Watch our MTD for VAT webinar series >view part 1 MTD explained

If you haven’t already done so, you should contact your existing accounting software supplier to find out if they will be MTD approved before the deadline. If you are using basic spreadsheets at the moment, you should get in touch with us to discuss a MTD-compliant alternative.

Keeping digital records will not mean businesses are required to use digital invoices and receipts but the actual recording of supplies made and received must be digital. It is likely that third party commercial software will be required for those not using MTD-compliant software come April next year. Software will not be available from HMRC. The use of basic spreadsheets to store your records and manually entering and/or tweaking your submissions in HMRC’s website will also not be an option from 1 April 2019.

Moving to MTD-complaint software in advance of the deadline, or appointing an agent who is MTD-ready to submit returns on your behalf, will set your business in good stead when other taxes, such as Income Tax and Corporation Tax, fall within the MTD programme over the next couple of years.

TPL fc 2018 19The best time to make the switch to MTD-compliant software will, in part, be driven by your accounting year. If your accounting year follows the tax year and ends in March 2019 with your quarterly VAT returns following the calendar quarters March, June, September and December, you will need to MTD ready by 1st April 2019 as any transaction which takes place on or after this date will be included in your June 2019 MTD VAT submission.

If your accounting year ends on a different date (e.g. 30th November), you should consider switching software as soon as you can, in this instance from 1st December 2018. If you begin a new accounting year without a MTD solution in place, you may find that you will have to switch accounting systems part-way through an accounting year which can be done but is best avoided.

If you are having trouble understanding your options and what you need to do get MTD-ready, get in touch with Kim Matheson, Cloud Accountant and she will arrange a time to meet with you to discuss the various options available.

MTD for VAT information session

  • When: 13 February 2019 9am-10.30am
  • Where: Martin Aitken & Co Glasgow office >location details

What's on the agenda:

  • What is Making Tax Digital and how will it impact my business?
  • Approved software overview: accounting software, VAT bridging software and our solutions.
  • Software demonstrations: submitting your VAT returns after 1 April 2019.

If you would like to attend, please send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. and she will register you. 

Finance & Tax Acuity Autumn 2018-19
What is VAT and the importance of VAT awareness

Related Posts