You might not realise it but soon many businesses will need to interact with HMRC digitally online. How this works in practice is still being ironed out by HMRC but this is what we have been told so far:
- From April 2019 any business with turnover above the VAT Threshold (currently £85,000) will need to keep some VAT records digitally and to calculate and submit their VAT return via and Application Programme Interface (API).
- It may take various forms (eg: some sort of bridging software, or API enabled spreadsheets) but it must be a digital transfer.
- Options include XML import/ export, macros or linked cells.
- For Businesses that are Partially Exempt eg: some landlords with a mix of commercial and residential property, the adjustment can be done digitally or manually.
So what is a digital record? So far HMRC has said it includes:
- Info about your business – name, address, Vat number and any VAT schemes used
- Sales – the time, value an VAT rate
- Net value of all sales split between standard, reduced and zero rated, exempt and outside the scope.
- Purchases – time, amount and input VAT being claimed
- VAT account
- the totals of any adjustments (eg: partial exemption)
This will be a big change for many businesses. We can help you review what you have now and let you know what you need to do to enable a trouble free transmission to fulfill the HMRC’s digital needs. Why not get in touch to find out more?