About Making Tax Digital
Making Tax Digital – or MTD as it’s often called – is the UK’s biggest tax shake-up in a generation. Making Tax Digital is HMRC’s plan to bring UK tax into the digital age, beginning in April 2019. In a nutshell, every UK business will be affected. Here’s what will change:
If you’d like to learn more about MTD then read on or check out the QuickBooks MTD hub.
Businesses with an annual turnover above the VAT threshold (currently £85,000) will be required to keep their records digitally and file VAT returns online on a quarterly basis. Businesses who are currently exempt from having to file VAT returns online will also be exempt from MTD until otherwise notified by HMRC.
Businesses with a turnover above the VAT threshold need to comply by April 2019. Businesses below the VAT threshold can comply on a voluntary basis until otherwise notified by HMRC.
QuickBooks Online currently support the recording and storage of digital accounting records and submission of online VAT returns. We will soon be releasing an update to ensure the above QuickBooks plans remain MTD compliant.
Hi @CliveT, this isn't something we've announced that'll necessarily become a reality, however, it's certainly something we can take away as feedback especially if it's a benefiting feature. QuickBooks allows users to track, calculate, report and even submit online. It also allows secure communication between accountant and client within the software.
You can read more about our approach on MTD as well as being able to view our free guides.
Thanks for that welcome. Not really a business - a let property with rental income and a few investments, but just complicated enough to merit keeping electronically. A lot of people in my position like spreadsheets and of course that approach is cheaper and gives one an apparent degree of freedom in design, but it can get big and the risk of undetected error is much higher than with a commercial product like QuickBooks.
Hey @CliveT, we've recently announced bridging software for Making Tax Digital that'll make it a lot more straightforward for excel users. This bridging software would fix the spreadsheet conundrum by digitally linking a spreadsheet to HMRC via an MTD-ready software product.
When HMRC talks about bridging software, this is more than likely to come in the form of an add-in widget that you bolt onto a spreadsheet to transfer the data without rekeying.
You can read more about the bridging software here.
Since this post the QuickBooks team have released an update regarding the development of Making Tax Digital in QuickBooks Online and Desktop.
(QuickBooks UK Team)
Please be aware that Quickbooks Online will not be compliant for MTD for those
on the Flat Rate Scheme. Please make your clients aware as Intuit seem unwilling to do so.
They have no current plans (as at 14/11/2018) to include those on the Flat Rate Scheme within their MTD program.
Responses from Intuit most welcome to this rather unbelievable situation
Making Tax Digital begins in April 2019 and Quickbooks will be complaint with this across the board including Flat Rate Scheme. Currently there is testing that has to be completed to make sure the FRS VAT filing will pull across correctly to HMRC and this is why there has been a delay in adding this option in the product. It will be in place before it is a legal requirement however, rest assured
Hi Emma. Thanks for the reply. Unfortunately, your own development team have replied differently.
With regard to including FRS submission in QuickBooks for MTD , it is not currently included on the beta test. I cannot give you any guarantees that this will be added in a future release but I will add my recommendations to it. I will forward this feedback to our Product Development Team so they can work on it and so this will be added in the future release. But I cannot I cannot give you any guarantees that this will be added in a future release but I will add my recommendations to it.
So no promise that FRS will be included by April 2019
Who is it in Intuit that has told you FRS and filing direct to HMRC in Quickbooks will not be complaint by April next year for making tax digital? The testing i mentioned for FRS filing is not the beta test which some accountants and small business companies are currently doing, it is by our engineers in regards to updating the product to make it ready.
I can not see in the quote you mentioned anywhere where they have said it will not be in place by April 2019.It is not in the beta testing because it needs more work at the moment. It is a legal requirement for it to be by that date(April 2019) but as I am sure you are aware companies and software providers alike have until that date to be complaint
It is Zerry at [email address removed]
The answer was in reply to a question i made about whether QBO will be able to file directly to HMRC in an MTD compliant fashion (currently you have to go on to the HMRC site and retype the data in).
Zerrys response specifically states :
"But I cannot I cannot give you any guarantees that this will be added in a future release but I will add my recommendations to it. "
Hope that helps