{"id":28331,"date":"2018-02-28T14:36:46","date_gmt":"2018-02-28T14:36:46","guid":{"rendered":"https:\/\/www.clearbooks.co.uk\/blog\/?p=28331"},"modified":"2018-11-08T12:01:45","modified_gmt":"2018-11-08T12:01:45","slug":"making-tax-digital-pilot-testing-vat","status":"publish","type":"post","link":"https:\/\/www.clearbooks.co.uk\/blog\/making-tax-digital-pilot-testing-vat\/","title":{"rendered":"Making Tax Digital (MTD) for VAT pilot testing"},"content":{"rendered":"

Clear Books has been working closely with HMRC to make sure our accounting software is ready for the implementation of Making Tax Digital<\/a> (MTD) in April 2019.<\/p>\n

In order for HMRC to ensure the system is working as it should do and is ready for its launch next year, we will be carrying out thorough pilot testing in the months leading up to its implementation. We have already completed successful MTD submissions<\/a> and are happy to help practices get ready for the change by experiencing a digital submission for their clients.<\/p>\n

Participate in MTD for VAT pilot testing<\/h4>\n

If your business is VAT registered then you have the chance to be one of the first to use the system and take part in this ‘pre-launch’ beta testing phase of MTD.<\/p>\n

Remember, from April 2019 onwards, quarterly reporting for VAT is going to be mandatory<\/strong> for all VAT-registered businesses whose taxable turnover is greater than the registration threshold (\u00a385,000), while it will be optional for those businesses that are VAT registered but whose turnover falls below \u00a385,000.<\/p>\n

While you may be wondering why it\u2019s a good idea to participate in the beta testing programme that will begin in April 2018, there are some good reasons why you stand to benefit from taking part.<\/p>\n

Get ahead of the curve<\/h4>\n

The main one of course is that you get a headstart on everyone else.<\/p>\n

While other businesses that are required to comply with MTD will be getting used to using the system after its launch in 2019 – and may therefore face a learning curve – by taking part in the pilot testing ahead of time, you’ll be prepared for the official launch of MTD when it comes around.<\/p>\n

By getting involved as one of the system’s early users you’ll also have the chance to offer your feedback to HMRC and have an influence on how MTD functions going forward.<\/p>\n

Take the initiative<\/h4>\n

The important thing to remember is that MTD is<\/strong> going to be implemented and that it will<\/strong> be compulsory for VAT-registered businesses with a taxable turnover of more than \u00a385,000 to submit their VAT returns using the system – there’s no way to avoid it. As such, it’s better to take the initiative and get onboard now, rather than waiting until the last possible moment.<\/p>\n

As the number of businesses taking part in the MTD pilot testing will be smaller than the number of businesses that will have to use it after April 2019, you’ll also get to benefit from more personal support and guidance than might otherwise be the case.<\/p>\n

It’s also worth taking into account the fact that HMRC has said participating businesses will not be subjected to more scrutiny just because they’re part of the pilot testing. There are no extra compliance checks and any monitoring that takes place will only be for testing purposes.<\/p>\n

Quarterly reporting under MTD<\/h4>\n

One of the main reasons why HMRC is bringing MTD in in the first place is to make it easier for businesses and their accountants to get an accurate picture of what their tax liabilities are throughout the year.<\/p>\n

Quarterly reporting will provide you with a regular snapshot of what your liabilities are, making it easier for you to take into account what you owe and giving you clarity, so that you can plan your business spending accurately off the back of it.<\/p>\n

While many other accounting software providers have made it clear that they have no plans to go beyond merely making their products MTD compliant, Clear Books is fully committed to helping businesses get ready for the age of digital tax by constantly improving our software.<\/p>\n","protected":false},"excerpt":{"rendered":"

Clear Books has been working closely with HMRC to make sure our accounting software is ready for the implementation of Making Tax Digital (MTD) in April 2019. 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