VAT

Value Added Tax is one of the most complex and onerous tax regimes imposed on business - so complex that many businesses inadvertently overpay or underpay VAT.

The ever widening scope of VAT, the constant stream of detailed changes to the regulations, and the ever growing demands of Customs and Excise call for a trained professional eye to ensure that you do not fall foul of the regulations and do not pay the Exchequer more than you need to.

We provide an efficient cost effective VAT service, which includes:

  • Assistance with VAT registration
  • Advice on VAT planning and administration
  • Use of the most appropriate scheme
  • VAT control and reconciliation
  • Help with completing VAT returns
  • Planning to minimise future problems with Customs and Excise
  • Negotiating with Customs and Excise in disputes and representing you at VAT tribunals

Landau Morley offers VAT healthchecks, where we consider with you your appropriate response to the options above.

Client Alert – Making Tax Digital for VAT

From April 2019, as part of HMRC’s drive to digitise the tax system, there will be sweeping changes to the way that VAT registered businesses will be required to record transactions and submit VAT returns.

WHAT DO I NEED TO KNOW?

You will no longer be able to use the existing government gateway portal to submit VAT returns.

Paper records will no longer be sufficient – it will become mandatory to use software or a spreadsheet to keep accounting records.

VAT figures will be required to be submitted to HMRC using MTDfv compliant software.

The new rules will apply from your first VAT period starting on or after 1 April 2019.

WHAT DO I NEED TO DO?

In order to establish the impact that MTDfv will have on your business, the action you MUST take and how Landau Morley LLP can assist if required, please follow the checklist below:

1. Are you currently NOT VAT registered and likely to remain that way?

- YES – No action required at present

- NO – Go to question 2

2. Are you currently NOT VAT registered BUT likely to breach the VAT threshold (turnover of £85,000 on a rolling 12 months basis or anticipated turnover of £85,000 in the following 30 days) by April 2019?

- YES – You will be required to transition to MTDfv in April 2019 – go to question 3

- NO – No action required at present

3. You are VAT registered or will become VAT registered by April 2019.  Do you use bookkeeping software to record your transactions?

- YES – You may be able to use your existing software to comply with MTDfv – your starting point is to contact your software provider and ask them what arrangements they have in place for MTDfv – then be in touch with your Landau Morley LLP contact to discuss the transition and how we can assist if required

- NO – Go to question 4

 

4. Do you use Excel spreadsheets to record your transactions?

- YES – In most circumstances Excel spreadsheets will be an acceptable form for recording transactions. However, you will need to use specialist software (known as bridging software) to submit your VAT returns. We will be operating this software on behalf of our clients – please be in touch with your Landau Morley LLP contact to discuss your options if required 

- NO – Go to question 5

5. From April 2019 it will no longer be acceptable to record your transactions manually. You will be required to transition to a digital solution. You should be in touch with your Landau Morley LLP contact as soon as possible to discuss your options. 

Please note that if you are voluntarily VAT registered (ie. your turnover is less than £85,000 on a rolling 12 months basis) there is no action required at present.

MTDfv is only the first step in HMRC’s digitisation strategy; it is virtually certain that in the future (but not before 2020) MTD will be extended to income tax and corporation tax – we will provide you with further details as they become available.