We’re so close to the first quarterly deadline (August 7) for digital VAT that you can almost touch it.
In fact, for firms paying by direct debit, they must register by Monday 29 July. Yet, in the weeks leading up to this point, it seems we’re some way short of seeing things running entirely smoothly for the new MTD regime.
HMRC released figures on 11 July showing 600,000 out of 1.2 million businesses affected by the MTD rules (those with an annual turnover above £85,000) have registered – meaning about half hadn’t.
Customers and industry insiders have indicated that quite a few accountants have found the HMRC registration process confusing. The fact there are two types of registration is perhaps part of the reason. These are:
• An agent services account
• Individual businesses for MTD
Understanding where to go on the HMRC site and what order to carry out the process seems to be a big part of the problem.
Fear not though. If you’re reading this and count yourself among the confused, our easy to follow guide breaks it down. It contains a detailed three step process. However, here’s a precis:
1) Registering on HMRC’s site
Agents (anyone representing a number of clients) must register for an agents services account. This is done via https://www.gov.uk/guidance/get-an-hmrc-agentservices-account.
2) Linking your Agent Services Account with your clients
Once you have your new account you will be able to link your existing client relationships for VAT to these new credentials. Again, it will not remove the client authorisation from your existing credentials. This mapping process is carried out in the same government web screens and is currently not possible via software.
3) Registering clients for MTD
Each business must register for MTD. This is also done via the government’s web pages. Your clients can register themselves for MTD for VAT or you can register them. The process must, however, be carried out one client at a time because personal details have to be entered.
Once you’ve read the guide in full, we’re certain you’ll be on the right path to successful compliance.
Still looking for extra support? Speak to our MTD experts. Email firstname.lastname@example.org and one of the team will be happy to call you.