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April 2021 implementation of VAT MTD Phase 2

Do you understand what the changes to the end of the soft landing period for VAT MTD will mean for you?

If you are still using the manual entry HMRC VAT submission portal, then you are still non-compliant and really should take action now.

If you are using bridging software, then the data flowing into that bridging software must be a flow of electronic data from the point of initial input of invoices and receipts to the final totals flowing to HMRC via the bridging facility. Links can be from one downloaded spreadsheet report into the calculation and bridging files, but at no point should there be manual copying and pasting or manual entry (with the exception of a few specific areas such as partial exemption adjustments).

If you are using #Xero, #Quickbooks, #FreeAgent or #Pandle to submit your #VAT return via their #MTD portals, based on your books and records wholly stored therein, then you have absolutely nothing. You are ready and you have been for as long as you have been using their software. Your attention should turn to ensuring your transactions are treated correctly.

The only exception to this is if you manually post data from one system to another, which creates a break in the digital chain, in which case you may need to improve your use of integrations and upload functionality within your online financial data systems.

So if you are still using bridging software, have yet to move to online accounting or have manual entry breaks in your data flows then you have less than two months to review and refine your processes.

Accounting needs to be fluid, from transaction through to reporting.

If you want some help, get in touch. The clock is ticking.

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