Discussion
Exactly. VAT is nothing to do with accounting, financial, fiscal or tax years.
The 12 months the VAT man is interested in a a rolling 12 month period. In other words, you need to monitor your turnover to see how close it might be to ANY of the various thresholds that exist in the VAT system, you must always count back from the end of your most recent calendar month of trading.
In fact, there is also a looking forward test as well. If you think it is LIKELY that you are going to push through a threshold at any time in the NEXT twelve months, you should also take the appropriate action as well.
Many people fail to monitor their rolling ongoing turnover and therefore break through VAT thresholds without realising.
The 12 months the VAT man is interested in a a rolling 12 month period. In other words, you need to monitor your turnover to see how close it might be to ANY of the various thresholds that exist in the VAT system, you must always count back from the end of your most recent calendar month of trading.
In fact, there is also a looking forward test as well. If you think it is LIKELY that you are going to push through a threshold at any time in the NEXT twelve months, you should also take the appropriate action as well.
Many people fail to monitor their rolling ongoing turnover and therefore break through VAT thresholds without realising.
Interesting developments - and not totally unexpected -
MPs call for halt of wider MTD roll-out
The Public Accounts Committee has warned that it is unclear whether the Making Tax Digital (MTD) rules rolled out in 2019 have achieved their stated aim of reducing tax errors. As of April 2019, VAT-registered businesses and self-employed people with a turnover exceeding the £85,000 VAT threshold have to use specialist software when they file their returns. A report by the Association of Taxation Technicians says some small businesses have had to spend more than £5,000 on software and training. While HMRC wants all firms to adhere to MTD as of April 2022, the committee says this should be delayed until it is ascertained whether MTD is "reasonable and affordable". The Chartered Institute of Taxation has backed the call for greater scrutiny of the changes.
MPs call for halt of wider MTD roll-out
The Public Accounts Committee has warned that it is unclear whether the Making Tax Digital (MTD) rules rolled out in 2019 have achieved their stated aim of reducing tax errors. As of April 2019, VAT-registered businesses and self-employed people with a turnover exceeding the £85,000 VAT threshold have to use specialist software when they file their returns. A report by the Association of Taxation Technicians says some small businesses have had to spend more than £5,000 on software and training. While HMRC wants all firms to adhere to MTD as of April 2022, the committee says this should be delayed until it is ascertained whether MTD is "reasonable and affordable". The Chartered Institute of Taxation has backed the call for greater scrutiny of the changes.
Yep, not actually sure what the benefit is to either companies, accountants or the VAT man.
I think they were hoping it would raise revenue income and make it cleaner for them, but for me it's essentially the same system I was using before so no change apart from purchasing a newer version of Office and an extension link it to MTD. But that's only my own personal use of the system.
I think they were hoping it would raise revenue income and make it cleaner for them, but for me it's essentially the same system I was using before so no change apart from purchasing a newer version of Office and an extension link it to MTD. But that's only my own personal use of the system.
My biggest objection to MTD is that (as far as I know, and please correct me if I am wrong) there is no free basic software available. Every option seems to incur an extra cost, and not just a one-off one but a monthly one. And frankly I have enough outgoings without having to pay for something extra that doesn't benefit me in the slightest.
I'd even be happy if my accountants included the software in their fee, especially as the software would make their life easier rather than mine.
I know, I know. It's a selfish blinkered attitude on my part.
I'd even be happy if my accountants included the software in their fee, especially as the software would make their life easier rather than mine.
I know, I know. It's a selfish blinkered attitude on my part.
Edited by Clockwork Cupcake on Wednesday 21st October 12:51
Clockwork Cupcake said:
My biggest objection to MTD is that (as far as I know, and please correct me if I am wrong) this is no free basic software available.
There is:https://www.avalara.com/simplify/en/eu/avalara-mtd...
sgrimshaw said:
Awesome. Thanks for that. 
Edit: Aww bummer. It seems that Excel add-ins are not compatible with LibreOffice Calc. That's a shame.
Edited by Clockwork Cupcake on Wednesday 21st October 12:54
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