-->P&Co税务电子化(Making Tax Digital) 指南(简体中文)
What is Making Tax Digital (“MTD”)?
The first stage of MTD will focus on VAT. It imposes new requirements for digital record keeping on VAT registered businesses from April 2019.
What do you need to know?
Keep digital records
Keep accounting records digitally in a software product or spreadsheet. Paper records will not meet the legal requirements in the new legislation.
Submit to HMRC through compatible software or API
VAT returns to HMRC must be submitted using compatible software (through HMRC’s API). HMRC’S online VAT return will remain available only to businesses that are voluntarily registered for VAT.
Everything else remains the same
There are no underlying changes to the VAT rules, the amount of information required to be submitted to HMRC, or the current filing and payment deadlines for VAT.
When does it start?
What does digital record keeping mean?
What records need to be kept digitally?
For supplies made
For supplies made The time of supply, the value of the supply and the rate of VAT charged. Together this will be needed to make up the record of outputs value for the period split between standard rate, reduced rate, zero rate, exempt and outside of scope outputs.
For supplies received
The time of supply, the value of supply including any VAT that is not claimable and the amount of input tax to be claimed. Together these will make up the VAT account, and this is what needs to be used by the software to complete the VAT return.
Records should also include information about your business, including business name and principle business address, as well as your VAT registration number and details of any VAT accounting schemes you use.
What if records are maintained in different places?
Flat rate schemes. The flat rate scheme will continue and digital records of supplies received will not be required.
An exemption also exists for the digitally excluded and mirrors the current exemptions from online filing for VAT.
MTD for VAT..are you ready?
MTD for Income Tax… coming soon
This is expected to be mandated not before 2020.
HMRC has also launched a voluntary MTD pilot for Income Tax in spring 2018 and you may want to consider joining that so that you can start to get ready for MTD earlier.
P&Co are trained and well positioned to help all our clients be ready for Making Tax Digital.
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