Pegasus Opera 3 (2.60+)
Making Tax Digital (MTD) is a government initiative designed to transform the tax system and to end the use of the tax return for a great many taxpayers. It is intended to make it easier for businesses and individuals to maintain records and to get their tax correct. Under Making Tax Digital for VAT, businesses will be required to keep records digitally and send VAT return data to HMRC online.
Making Tax Digital for VAT comes into force on 1 April 2019 and will apply for most businesses with annual sales over the VAT threshold of £85,000. If Making Tax Digital for VAT applies to you, you’ll have to use digital tools to keep records of your income and costs.
Until 1 April 2019 you can use the free Government Gateway for entering your VAT return, but for your first full VAT period after 1 April 2019 you will need to use Making Tax Digital for VAT software to submit your VAT returns.
You will not have to follow the Making Tax Digital for VAT rules where HMRC is satisfied of the following:
The business is run entirely by practicing members of a religious society whose beliefs are incompatible with the requirements of the regulations (for example, those religious beliefs prevent them from using computers).
It is not reasonably practicable for the business to use digital tools to keep your business records or submit your returns, for reasons of age, disability, remoteness of location or for any other reason.
The business is subject to an insolvency procedure.
A six-month deferral period will apply to businesses who fall into one of the following categories. These groups will be mandated to use Making Tax Digital for VAT from 1 October 2019.
Trusts
Not for profit organisations that are not companies (this includes some charities)
VAT divisions and VAT groups
Public sector entities that are required to provide additional information alongside their VAT return (such as Government departments and NHS Trusts)
Local authorities and public corporations
Traders based overseas
Those required to make payments on account
Annual accounting scheme users
For more details please visit www.gov.uk and read these articles:
- Overview
of Making Tax Digital
- Vat-notice-70022-making-tax-digital-for-vat
The following features are available for Making Tax Digital for VAT:
Options on the Company Profiles screen to switch on Making Tax Digital for VAT at the appropriate time.
The MTD VAT Centre, which is used for the following:
Authorising your Pegasus Opera 3 software with HMRC for Making Tax Digital for VAT.
Creating VAT codes, including a new 'J' type code for posting end of period VAT adjustments.
Posting VAT adjustments to amend box values either before or after committing your VAT data to the VAT period, retaining a record for audit purposes.
Automatically consolidating VAT transactions into the group company in Pegasus Opera 3 when the VAT periods are committed in the subsidiary companies. Subsidiary companies must have the same .
Monitoring the current VAT Return values and viewing box values for previous submissions.
Submitting VAT Returns to HMRC using the HMRC Making Tax Digital for VAT 'API'.
Viewing the responses from HMRC after VAT Returns are submitted.
Printing file copies of previously submitted VAT Returns.
Importing VAT values.
This additional guide for Making Tax Digital for VAT is available at docs.pegasus.co.uk.
Checklist guide for switching on MTD for VAT |
This guide is provided so that you understand how to switch on Making Tax Digital for VAT in Pegasus Opera 3. |
An FAQ guide covering frequently asked questions about Making Tax Digital for VAT is available on the Pegasus Opera 3 User Guides page at docs.pegasus.co.uk.