Making VAT Digital (MVD) Compliance – Businesses still not quite there yet it seems
There’s been a range of surveys and commentary in the accounting press in recent weeks about the readiness of UK businesses for the 1 April 2022 date which brings all VAT registered businesses who are voluntary registrations into the MVD net. One software provider undertook a recent survey which indicated 279,000 small businesses in the UK are not yet compliant for the change.
From our experience it is not just this last cohort of smaller businesses that are still not fully compliant with the internal digital links which are now key to compliance with this digital reporting strategy from the UK Tax authorities. Recent experience has shown that many larger organisation still have to address a fully compliant VAT accounting build up to the data required for the VAT return submission. Some process can still remain manual such as Partial Exemption and Capital Goods Scheme Adjustments but the bulk of data moving through the ledgers to the VAT account should be achieved through digital links. It’s not just about the submission of the VAT return to HMRC being through a digital link I’m afraid.
The recent changes – as a result of Brexit – have created additional VAT accounting processes around “reverse charges” and import VAT on goods which have needed to be mapped into this digital framework. Centurion can help your organisation achieve compliance with these Digital reporting processes – map where VAT accounting data needs to be drawn from and what needs to flow into each box of your UK VAT Return.
A half day walk through of your VAT processes and accounting with Centurion VAT is a great place to start your journey to compliance in this regard. If this idea appeals then don’t hesitate to get in touch at email@example.com or call one of our Specialist team
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