No VAT penalty if you missed the first quarterly MTD deadline

If you pay your VAT quarterly by direct debit the sign-up window has closed for the 7 August (30 June quarter) submission. Do not worry as HMRC have announced that you will not be penalised this time so you may file the old way and come back when the direct debit has been collected to sign up in time to file the next return.

Although HMRC will not penalise you, they will send a letter telling you that you missed the deadline and asking you to take action.

Making Tax Digital for Business

Making Tax Digital was introduced in the 2015 Spring Budget. The government’s ‘Making Tax Easier’ document was published shortly after and outlined plans for the ‘end of the tax return’. It also set out the government’s vision to modernise the UK’s tax system, with digital tax accounts set to replace tax returns for businesses.

Making Tax Digital for VAT

From 1 April 2019, businesses are mandated to use the Making Tax Digital for Business system to meet their VAT obligations. Under the new rules, businesses with a turnover above the VAT threshold (currently £85,000) must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software.

Company officers jointly and severally liable for VAT penalty

The decision in a recent tax tribunal case reminds us that directors and other company officers may be personally liable for VAT penalties of their company. The recent case involved a penalty for late registration for VAT where the threshold had been exceeded.
Three conditions must be satisfied before the liability for a penalty payable by the company can be imposed on an individual:

1) A penalty must be payable by the company for a deliberate failure.

2) The individual on whom HMRC seek to impose liability must be an “officer” of the company

3) The deliberate failure must be attributable to that officer.

Our dedicated team of chartered accountants have over 40 years of combined experience, providing full VAT and tax services to ensure your business complies in accordance with HMRC Guidelines. A&C are experienced with the new Making Tax Digital scheme. We have already helped many clients old and new get their accounts set up and ready for the switch. Our dedicated Making Tax Digital experts ensure this is done without affecting your business in any way and a smooth transition is key to the successful implementation.

A&C Chartered Accountants are at the forefront of the best cloud accounting software to ensure the most efficient technology fits perfectly for your business. Through extensive research and training our team use Xero and Sage Business Cloud to help submit your tax returns online. Your dedicated business account manager will provide free cloud accounting training and offer unlimited support whenever you need it.

For more information please do hesitate to contact us on 0161 962 1855. Alternatively, you can email us using the form below and one of our dedicated accountants will contact you back as soon as possible.

Need more information?

We love nothing more than learning about new start-ups and helping you get off on the right foot! We offer a wide range of services which are unique to businesses who are just getting going! As start-up accountants we have a wealth of experience in all sectors between our team. From restaurants, fashion brands, fitness centres and many creatives start their business correctly and ensure they are staying tax compliant. The team work hard to ensure they create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.

Our fantastic team at A&C Chartered Accountants are here to help.

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