MTD will come into effect on April 1st for VAT-registered businesses with a taxable turnover above the VAT threshold of £85,000. Prepare your practice and your clients before the deadline. Use AutoEntry to automate data entry and generate digital records.
If you haven’t already, put MTD at the top of your agenda in your next team meeting, or schedule a dedicated planning session on the topic. Ensure all your employees understand what these changes mean for VAT-registered clients and arrange training if needed.
Make a timeline, working backwards from April 1st of what you need to do to prepare your clients in time. Run an audit to ﬁnd out how many clients are using desktop software and/or spreadsheets and will need the most support to make the switch to online accounting. Some businesses may take longer to transition to working digitally than others, especially those who have the biggest leap to make or more complicated tax aﬀairs. Tackle the most proactive of these clients ﬁrst.
Once you know how much extra work you will have, review your capacity and hire additional staﬀ if needed. Consider encouraging other clients who don’t yet qualify for MTD, to switch to digital working as well, as it is likely that the regulations will be widened to incorporate all businesses at some point.
Next, you’ll need to set up an Agent Services Account (ASA), which will allow your practice to submit digital VAT returns on behalf of clients. Everything you need to know about setting up an ASA can be found online here.