In July 2017, the Financial Secretary to the Treasury and Paymaster General announced that Making Tax Digital for VAT will come into effect from April 2019. From that date, businesses with a turnover above the VAT threshold (currently £85,000) will have to do the following:
- Keep their records digitally (for VAT purposes only)
- Provide their VAT return information to HM Revenue and Customs (HMRC) through ‘Making Tax Digital’ (MTD) compatible software
This means, as of April next year, that you will need to make your VAT returns electronically by uploading them to HMRC. To do this, HMRC are providing some ‘hooks’ which CDS will incorporate into CODAS so that VAT returns can be loaded directly from CODAS. As well as the VAT return itself, HMRC may request transactional data in support of the VAT return. Again, we intend to provide facilities to enable our customers to meet this requirement.
CDS has already started working in collaboration with a cross section of our customers to determine, develop and implement a CODAS solution that is functional, relevant and meets not only the needs of our customers, but also the regulatory requirements of HMRC.
We intend to build customers’ familiarity with the new CODAS solution through a programme of updates along with accompanying online documentation, with the first version of our solution available early in the New Year.
All CODAS users will have the solution implemented before the April 2019 deadline.
More information about Making Tax Digital for VAT is available on the HMRC website.