Making Tax Digital for VAT
Benchmark’s accounting software will be compliant with the ‘Making Tax Digital (MTD) for VAT’ regulations that come into force on 1st April 2019.
From the 1st of April 2019, businesses whose taxable turnover exceeds the VAT registration threshold will no longer be able to use manual records to record and submit their VAT returns. Instead, they will need to keep their records digitally, using what HMRC describes as “functional compatible software”.
Businesses will need to use accounting software that handles the ‘Making Tax Digital for VAT’ regulations in order to submit their VAT returns to HMRC.
The software has to be able to connect to HMRC’s systems via an Application Programming Interface, or “API”, which allows the two programs to ‘talk’ to each other.
The software must be able to:
- Keep the required records in a digital form
- Preserve those records in digital form for up to 6 years
- Create a VAT return from the digital records
- Provide HMRC with this information digitally
- Provide HMRC with additional data on a voluntary basis
- Receive information from HMRC about the business’s compliance record.
Your Accounting Software Update from Benchmark
Benchmark’s accounting software will be fully compatible with the new ‘Making Tax Digital for VAT’ regulations.
An HMRC-approved version of Benchmark’s accounting software will be available at the start of 2019 for initial installation by customers, although the functionality is not required until the 1st April 2019 start date.
As well as the necessary programs and screens that will allow users to create and submit their returns, we will also be adding some functionality to make entering purchase invoices and payments quicker and easier.