How Whittles can help you with Making Tax Digital (MTD)

24th March 2019

Making Tax Digital (MTD) for VAT will go live on 1 April 2019 for all UK businesses with taxable turnover over the VAT threshold of £85,000.If you are registered for VAT you will need to begin keeping digital records and filing your VAT returns using software. This software must be able to communicate with HMRC digitally via its Application Programming Interface (API).

Whittles has been regularly communicating with its clients to see how we can help. See our MTD needs schematic here. We are comfortable that the majority of you are prepared and ready to go digital but just in case there are still one or two of you who are still not sure that all is in place, we would like to highlight the following services available:

“Small and simple” – use us to bridge the gap

If you are one of our clients operating as a small and fairly straightforward business entity, for example a self-employed consultant with a handful of retained clients and low outgoings, then you may be questioning whether it makes sense to invest in the software and the new skills required by MTD. It may not.
We were approached by one such client who simply said that at her stage in her professional career, she had no intention of growing the business further but would like to sustain the current level of fee income for a further five to ten years. She was looking for a stress-free transition to MTD and peace of mind that she was being compliant.  In her business she charges for her time; it made sense to her to pay for more of our time.
We were able to offer this client a cost-effective solution.  HMRC have allowed bridging software to be part of the process, meaning data can be pulled from spreadsheets into HMRC software. Our client will continue to manage her relatively simple VAT returns using Excel but instead of her submitting her quarterly returns herself, Whittles will do so on her behalf using bridging software.  Although an additional cost to manage her VAT returns, our client is happy that she can continue as she has always done in terms of her VAT records and sees some significant benefit, in terms of time-saving on the collation of her annual accounts, in us receiving her figures on a quarterly basis.
This is not a solution for everyone but if you have a similar business model as this client, it may be worth considering.

MTD is an opportunity – make the most of this by involving your advisers
It may not seem it at the moment but MTD is an opportunity to review your current VAT process and drive greater efficiency. We are here as your advisers and are happy to help you review your processes and your MTD solutions.  We are also happy to discuss one to one training based on individual needs.

Recent YouGov has concluded there could be up to 888,000 VAT-registered businesses in the UK who will not be prepared for MTD by the deadline in April, which is around a third of all businesses which need to be ready. At Whittles, we offer a full range of support options to make sure our clients are not part of this rather alarming statistic.  If you have not got MTD solutions in place by now, get in touch without any further delay.