Making Tax Digital

VAT

Under Making Tax Digital for VAT (MTDfV), businesses with a turnover above the VAT threshold must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software.

Keeping digital records and making quarterly updates will not be mandatory for businesses below the VAT threshold which have voluntarily registered for VAT, although such businesses can opt to join the scheme. There are some exemptions from MTDfVAT. However, the exemption categories are tightly-drawn and are unlikely to be applicable to most VAT registered businesses.

How we can help

Ensuring that you comply with all the VAT regulations is essential. We can assist you in a number of ways including the following:

• Tailoring your accounting systems to bring together the VAT information accurately and quickly
• Ensuring that your business is VAT efficient and that adequate finance is available to meet your VAT liability on time
• Providing assistance with the completion of VAT returns
• Negotiating with HMRC if disagreements arise and in reaching settlements
• Advising as to whether any of the available schemes may be appropriate for you
• Helping you comply with the MTD for VAT regime.

If you are starting, or have recently started a business in the West Midlands area and you would like to discuss any of the points mentioned in this VAT summary please contact us at Everest & Co – Accountants.

Book Keeping

The Real Time Information requirements are wide ranging and potentially onerous on employers.

We at Everest & Co – Accountants, can help you to set up and run your payroll on your behalf. We set out below details of how payroll information has to be submitted to HMRC under Real Time Information (RTI).

Under RTI, employers or their agents are required to make regular payroll submissions for each pay period during the year, detailing payments and deductions made from employees each time they are paid. There are two main returns which an employer needs to make which are detailed below.

Full Payment Submission

Employers may also have to make a further return to HMRC each month, the Employer Payment Summary (EPS) to cover the following situations:

• where no employees were paid in the tax month
• where the employer has received advance funding to cover statutory payments
• where statutory payments are recoverable (such as Statutory Maternity Paternity or Shared Parental Pay) together with the National Insurance Compensation payment; or
• where CIS deductions are suffered which could be offset (companies only).