In this LB Talking Points video, our VAT Compliance Manager Yvonne Collings and Cloud Accounting Specialist Andy Kemp, discuss the Digital Links aspect of Making Tax Digital, and how moving to a cloud accounting system could benefit your business.
Making Tax Digital (MTD) was brought in back in April 2019 for VAT registered businesses with a turnover above the VAT registration threshold (currently £85,000). All VAT-registered businesses trading at or above the VAT registration threshold have been required to keep digital records and submit their VAT returns via software that can directly link to HMRC.
For periods starting on or after 1 April 2021, businesses trading at or above the VAT registration threshold will now also be required to have ‘digital links’ in all their record keeping. This means there can no longer be any cutting, copying or pasting of data from one application to another, all data must be digitally linked.
HMRC have defined a digital link as the ‘data transfer or exchange within and between software programs, applications or products that make up functional compatible software (and these) must be digital where the information continues to form part of the digital records’.
If you have any questions or need help with the implementation of accounting software and systems, our team can assist you with this. Head to our Making Tax Digital Help Centre here: https://LBLink.uk/MTD
Please get in touch via the details below:
T: 01243 782 423
W: www.lewisbrownlee.co.uk
E: LetsTalk@LewisBrownlee.co.uk