From 29th April HMRC are closing the VAT portal on their website. What does this mean? What do I need to do next? We'll run through these things now!
What does it mean?
As mentioned above, HMRC are closing the VAT portal - the ability to file VAT returns using the hmrc.gov.uk website. All returns will now need to be filed directly from within your accounting software. This is a big change from how it is run currently and may mean you need to make changes to your current software package and the way you go about your day to day business.
Benefits of the changes
There are a number of benefits to HMRC introducing these changes.
Tax in real time - You will soon be able to see a real time picture of how much tax is due to be paid as VAT returns will be posted quarterly. This change will give a more accurate view of accounts to HMRC across the year as opposed to posting it all in one go.
Centralisation - At the moment most taxpayers cannot see a single picture of their liabilities and entitlements in one place – we are changing that. By 2020, customers will be able to see a comprehensive financial picture in their digital account, just like they can with online banking.
Transparency - Communications with HMRC will become automated leading for greater efficiency and not having to re input information that HMRC already has. With Digital Tax Accounts, clients will be able to see all of the information that HMRC holds on them and be able to check at any time whether their details are accurate and correct leading to a much more transparent relationship with HMRC.
What do I need to do?
You will need to make sure your current accounts package is up to date with the latest version. For example, with Sage 50, only version 24 will work with Making Tax Digital so this is something you will need to consider and budget for moving forward ahead of April 2019! So if you are a spreadsheet guru but do not use an accounts package, now would be the time to consider moving forward with one. As a Sage & SAP Business One reseller, Quintech are able discuss options regarding Sage & SAP upgrade options.
Get in touch today on 01684 882700 and speak to the sales team who will be able to help!