This update from Deloitte provides some more detail on Making Tax Digital, and sets out the key implications for members.
22 August 2018
Ahead of the 1 April 2019 go-live date, HMRC has released its Making Tax Digital for VAT guidance.
Deloitte has put together two documents to give you a clearer understanding of Making Tax Digital for VAT:
- A briefing paper, which provides an overview and outlines points for consideration.
- An ‘all you need to know’ document, which summarises the key points of the upcoming requirements and provides links for further reading.
What you need to do
As Deloitte set out in their update to members in the July finance newsletter, the key implications of Making Tax Digital for VAT that will affect your organisation are likely to be:
- Deciding on the approach to ‘digitally submitting’ VAT return information to HMRC, although in practice this is expected to be one of the more straightforward issues (software providers have started to launch their API offerings).
- The complexities arising from using multiple systems in order to accurately compile the VAT return, and identifying whether these systems provide compliant ‘digital records’ for the purposes of Making Tax Digital for VAT.
- Complicated VAT return methodologies that currently incorporate a number of different spreadsheets as well as manual adjustments, and whether this complies with the ‘digital link’ requirements.
- The interaction between partial exemption calculations and your VAT account, and other digital records.
If you would like to discuss any of these issues in more detail, please contact Will Jeffwitz who will direct you to a Deloitte contact.