Frequently Asked Questions
Last Updated: 13th February 2019
In December 2015, the UK government published a roadmap for a transformed tax system called "Making Tax Digital". This outlined their plans for making the administration of tax "more effective, more efficient, and simpler for tax payers".
At this time, the only part of the roadmap being implemented is for VAT.
Does MTD apply to Me?
Businesses with annual turnover in excess of the VAT registration threshold, £85,000, will need to submit their VAT information via the system by April 2019.
The only exceptions are if HMRC is satisfied that
- a business is run entirely by members of a religious society whose beliefs are incompatible with the regulations (for example, where those beliefs prevent the use of computers)
- it is not reasonably practical to submit returns via MTD (for example, due to age, disability or remoteness of location)
- the business is subject to an insolvency procedure.
Businesses with more complex VAT situations have been deferred for six months, until October 2019. This applies to:
- 'not for profit’ organisations that are not set up as a company
- VAT divisions
- VAT groups
- public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts)
- local authorities
- public corporations
- traders based overseas
- those required to make payments on account
- annual accounting scheme users
Will the MTD Roll-out get put back?
Although there has been speculation that the April 2019 deadline may get deferred (due to its proximity to the Brexit date), this seems highly unlikely at this late stage. A deferral for SMEs was recommended by the House of Lords Economic Affairs Select Committee in November 2018 (see Useful Links below) but it does not appear that these recommendations will be accepted.
How does this affect axis diplomat users?
At axisfirst, we are fully committed to providing support in axis diplomat for Making Tax Digital in readiness for the April deadline as standard in all versions within mainstream support (axis diplomat 2016 and above).
An essential part of MTD is digital record keeping - from April, all companies registered for UK VAT need to keep records digitally for a minimum of six years, effectively mandating the use of accounting software. axis diplomat 2016 and above are being extended where necessary to provide the necessary support for MTD, ensuring that both the digital record keeping and online submission facilities meet the requirements.
Versions of axis diplomat prior to axis diplomat 2016 do not have functionality required for compliance with MTD; we recommend discussing your requirements with us at the earliest opportunity. To keep informed on this and other related topics, please ensure that you subscribe to our Software Newsletter or follow us on Twitter.
What changes are being made to axis diplomat?
In addition to the changes to facilitiate online submission of VAT returns using the Making Tax Digital portal, we will also be providing the tools to allow you to correctly make and record final adjustments to the VAT figures prior to submission.
As and when software developments are made available, this website will be updated and details released via Twitter.
Does axis diplomat Feature on HMRC's List of Software Packages Compatible with Making Tax Digital?