Making Tax Digital (MTD) is part of the UK government’s plan to make the country’s tax system more efficient. It’s first stage comes into effect in April.
You only need to pay attention to MTD in 2019 if you are based in the UK, registered for VAT, and use Light Blue’s VAT return report. The scope of MTD will be widened in the future, but it’s very limited at the moment.
HMRC will require businesses to start submitting their VAT returns via compatible software from April 2019. However, that doesn’t mean that you have to use just one piece of software to manage your company’s finances: so long as you use “digital links” to transfer data between applications or to your accountant, MTD allows you to use a variety of tools. HMRC explicitly list CSV data exports and imports as an acceptable form of “digital link”, which means that Light Blue’s existing data export tools comply with MTD’s requirements.
If you’re already using Light Blue’s VAT return report, we will be in touch with you in the next few days to help you get ready for MTD. If you’re not using Light Blue’s VAT return report, you can probably carry on using Light Blue’s invoicing and other finance features just as you are at the moment because you can use our data export tools to maintain a “digital link” between Light Blue and accountancy software.
As always, if you have any questions or need any help then please get in touch with us via email!