The key dates to look out for are:
- 1 April 2019 - start of first VAT period where MTD is mandatory
- 7 June 2019 - submission deadline for first monthly VAT returns under MTD
- 7 August 2019 - submission for first quarterly returns under MTD
- 1 April 2020 – MTD mandatory for all taxes
To ensure that your business is ready for MTD, we would recommend the following 5 steps:
1 Take a deep dive into your VAT adjustments – consider whether they are correct, and how they flow through to your VAT account.
2 Review your internal reporting systems, processes and controls. Liaise with your software providers and internal IT teams to get a view on what they can do to help to get ready for MTD.
3 Consider likely costs and potential disruptions to your business. Agree additional budgets for changing and maintaining your systems, seeking specialist advice.
4 Test the integrity of your data and consider whether your VAT-related data is accurate, current and complete, whether there have been any recent data reviews, and whether your current VAT codes are appropriate.
5 Consider what information you wish to submit to HMRC and how API connection will work. Do you need to develop or acquire additional software? Is it easier to outsource the submission of VAT returns to a third party?