Making Tax Digital was rolled out for VAT in April 2019. \ Ramona Farrelly
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The lowest-cost option for complying with Making Tax Digital (MTD) for VAT will still be available when the rules become stricter later this year.
When MTD was rolled out for VAT in April 2019, many farm businesses started using bridging software programmes that are widely available online for little or no charge.
This software provides a “digital link” between a business’s VAT records on a standard spreadsheet, such as Microsoft Excel, and HMRC’s system for filing VAT returns.
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It proved a cheaper way of complying with MTD rules than signing up for a full accounting software package, or getting an accountant to file VAT returns on your behalf.
In April 2021, HMRC will end the so-called “soft-landing” phase for complying with MTD.
There has been some confusion that this will mean businesses will need to use a full accounting package, or an accountant, to be MTD-compliant, but this is not the case.
The use of low-cost software will still be permitted under MTD rules after April 2021.
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The lowest-cost option for complying with Making Tax Digital (MTD) for VAT will still be available when the rules become stricter later this year.
When MTD was rolled out for VAT in April 2019, many farm businesses started using bridging software programmes that are widely available online for little or no charge.
This software provides a “digital link” between a business’s VAT records on a standard spreadsheet, such as Microsoft Excel, and HMRC’s system for filing VAT returns.
It proved a cheaper way of complying with MTD rules than signing up for a full accounting software package, or getting an accountant to file VAT returns on your behalf.
In April 2021, HMRC will end the so-called “soft-landing” phase for complying with MTD.
There has been some confusion that this will mean businesses will need to use a full accounting package, or an accountant, to be MTD-compliant, but this is not the case.
The use of low-cost software will still be permitted under MTD rules after April 2021.
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