Making Tax Digital (MTD) for VAT
HMRC is changing the way you submit your VAT Returns (although in practice, for existing users of our Money Manager software, there is very little difference). From April 2019, most VAT registered businesses with a taxable turnover above £85,000 must keep their VAT records digitally and use Making Tax Digital (MTD) compatible software to submit their VAT Returns. More detailed information about MTD for VAT can be found in the ‘Links’ section below.
Our Money Manager 7 Business Edition software has been used to keep digital records and file VAT returns online for many years. We have been working closely with HMRC in order to make our software compatible with the new MTD for VAT requirements in readiness for April 2019.
LATEST: We have now published an update to Money Manager 7 Business Edition which will allow you to start using the new MTD for VAT service. Please see our help page on Making Tax Digital for VAT for details of how to use the new service
GOV.UK – Help and Support for making tax digital – Includes some useful videos which explain what ‘MTD’ means
– Is Money Manager 7 ‘Bridging Software’? – No. ‘Bridging Software’ is software that takes existing data (stored in an Excel spreadsheet, or other ‘accounting’ software’ for example), and then submits this data to HMRC in the new MTD format. Money Manager 7 is a ‘complete’ bookkeeping program i.e. you enter all of your transaction data (sales, purchases etc) into Money Manager initially on a day-to-day basis, and then click a button to file the MTD VAT return at the end of each VAT period.
– Does Making Tax Digital (MTD) affect payroll ? – No, not in the near future. MTD is initially concerned with a businesses VAT returns, and will later be extended to include individual tax returns, which are currently handled through self assessment.