As an accountant, you know that Making Tax Digital (MTD) is coming in April 2019. In October 2018, HMRC launched a new pilot to prepare businesses for the new legislation. Taking part in the pilot is a great way to get you and your clients a step ahead of the start date.
The pilot will be open to all QuickBooks users from X December 2018. There are two basic steps to joining the pilot. First you need to set up an Agent Services account, and then you need to link in your clients.
1. Set up an Agent Services Account
An Agent Services Account is the way accountants access new HMRC online services, such as the MTD pilot. It also lets you communicate directly to HMRC with software like QuickBooks. Any professional tax firm acting on behalf of their clients can set up an account. Each firm needs just one account.
To get an account just follow these steps: a) Sign in to the Government Gateway using the credentials you currently use to access HMRC online services for agents. b) Make sure you’re the person responsible for tax or administrative tasks. You’ll be asked to provide: * Your agent firm’s self assessment or corporation tax Unique Taxpayer Reference (UTR) * The postcode associated with the UTR c) When you create an Agent Services Account you’ll get a new Government Gateway ID to replace the one used to set it up. This new Agent Services Account is what you’ll use to access HMRC online services from now on – the Government Gateway ID you signed in with won’t work anymore.
2. Link your clients
Follow these steps to link your clients to the pilot: a) Sign in to the Government Gateway with your firm’s new Agent Services Account. Once you’ve successfully signed in, you’ll see an option to link your existing client authorisations to this account on the homepage. b) Add each of your agent Government Gateway IDs to the account. These are the Government Gateway IDs you use to access HMRC online services for your clients, and are linked to your agent codes. c) By linking existing VAT clients to your Agent Services Account, you won’t need to request authorisation from these clients to join the Making Tax Digital pilot.
Which clients should take part in the pilot?
Businesses registered for VAT with a turnover above the £85,000 threshold will be required to comply with MTD, so they’re the ideal choice. Don’t include any businesses on flat rate (we’re not supporting that scheme for the pilot), or any businesses that are exempt.
What happens next?
You’re all set up for the Making Tax Digital beta and ready to start testing with QuickBooks. If you haven’t already registered an interest in the pilot with QuickBooks, you can do so here.
And even if you don’t end up taking part in the pilot, you’ll still be a step ahead when April 2019 comes around.
Did you find this article about the Making Tax Digital pilot useful? The QuickBooks Blog covers many more topics. It’s all part of the support we offer to small businesses and accountancy firms in the UK.Learn how QuickBooks can help you with Making Tax Digital