As a business owner, it is fairly likely that you have heard of the upcoming changes to the UK tax system. Otherwise known as Making Tax Digital, these are going to change the entire face of how we go about managing our taxes.
In short, instead of doing one large annual tax return – which are often late, rife with errors, and miscommunication – you will file a series of smaller tax returns. The hope is that this will make sure you can start seeing far less errors, and also avoid having to pay large tax bills throughout the year.
However, if you are going to be using a VT account, then you have to make sure that you are using a solution that is MTD for VAT compatible. This means looking around making sure that you choose a software platform that is already approved and covered by HMRC.
Many people are signing up to VT tools that are going to be suitable for their needs, so make sure that you spend the time that you need to find out if you are taking on a legitimate tax assistant. When it comes to complying with MTD, only certain tax platforms are going to be suitable for it.
Is VT going to be MTD compatible?
The problem is that VT is not going to making the move to becoming MTD compatible. So, if you are using VT at the moment, you will have to make sure that you look around to find a suitable alternative. MTD for VAT is already coming into place for a lot of businesses, and it is rolling out for new industries all the time. As such, it would be very wise for you to spend as much time as you can looking at alternatives to VT.
Or, you could look to use one of the several platforms that is going to make sure that you can get the most out of your MTD for VAT needs. For example, software platforms such as BTCSoftware’s MTD for VAT system is going to be suitable for VT users to keep on using VT and to ensure that you comply with MTD for VAT.
This software will ensure that you can keep on using the platform that you feel most comfortable with, all the while ensuring that you can continue to use the VT system that you know so well. Since this combines together all of the key factors that you need, this will make sure that you can get a comfortable, ‘best of both worlds’ approach to how you handle VT.
For that reason, we recommend that you take a closer look at MTD for VAT – it will become much easier to handle it when you use the right platform.
While it might sound confusing at first, the fact that you can keep on using VT via the BTSoftware MTD for VAT add-on should provide you with some comfort. Don’t let the worries over a digital tax system make you feel uncomfortable. There is no reason to doubt that you can manage your books just as easily – if not easier – than you do today. All it takes is a bit of preparation.