Changes to VAT reporting will come into effect from April 2019. From that date, businesses above the VAT threshold will have to: keep their records digitally (for VAT purposes only) and provide their VAT return information to HM Revenue and Customs (HMRC) through Making Tax Digital (MTD) functional compatible software.
Making Tax Digital is a key part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs – meaning the end of the annual tax return for millions.
It has also been confirmed that MTD will be available on a voluntary basis to other businesses, for both VAT and Income Tax.
HMRC has confirmed plans to pilot its MTD reporting system in April, and Sage will be working with them to ensure the best possible experience for all Sage users. We will share more information on the progress of MTD within the Sage 200 system as soon as it is available, in the meantime we would encourage all customers to upgrade to the latest version of Sage 200 to ensure they are ready and best positioned for the updates needed for HMRC compliance to MTD.
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