Making Tax Digital - We can help

Have you joined the Making Tax Digital Pilot?

At the staging date advised to by the HMRC (either the first VAT period on or after 1st April 2019, or 1st October 2019), VAT-registered businesses in the UK will need to submit their VAT returns using functional compatible software, as part of HMRC’s Making Tax Digital (MTD) plans.

We are working hard with all our customers to provide either an upgrade or to provide software from Sage for compliance with Making Tax Digital. This is a new way of submitting your VAT returns using HMRC approved, API compatible software, also taking into account digital links so that the “chain of custody” of accounting data is preserved.

You may have already received a letter from the HMRC about what the public beta phase of the Making Tax Digital VAT pilot is. If you have, you’re not alone. Approximately 200,000 HMRC Making Tax Digital letters are being issued to businesses and more will be going out soon to let them know about the new service. Therefore if your business hasn’t received a letter yet, that’s not to say it won’t. Read more here about HMRC Making Tax Digital Letters.

What does this mean for my business?

If you need to join the Making Tax Digital pilot we can help. Whether you have received a letter from HMRC or not, you can still apply to the Beta in March or wait for staging by the HMRC.  Acceptance to the beta programme in March will be subject to the HMRC’s criteria

Going live with Making Tax Digital involves a number of steps, and K3 will help you through them:

  1. You’ll need to upgrade to Sage 200 v2018 or purchase the Sage Making Tax Digital module. You must have compatible software before you sign up for the pilot or are staged by the HMRC
  2. You then need to apply to the HMRC to join the Making Tax Digital pilot for VAT. You can read more here 
  3. Once approved, notify K3 and we will contact Sage who switch on Making Tax Digital for your account, and send you a £200 discount code
  4. You then go to Sage University website and add the £200 Making Tax Digital training to your cart. You apply the £200 discount code and checkout the £0 purchase.
  5. This gives you access to the training (3 hour video) and you’ll need to submit the current quarter VAT via the Making Tax Digital module
  • FAQS

    Q. I’ve not completed a VAT return via Sage 200 before?

    A. You will need to create a dummy return for the quarter or month prior to beginning Making Tax Digital.

    Q. Should I stage early?

    A. There are criteria for staging early, once you stage there is no possibility to reverse this.

    Q. I’m part way through an upgrade, do I need to worry?

    A. It’s important you work with us that infrastructure (e.g. server) is ready and that you dedicate time to the upgrade project. We are scheduling customers according to their first VAT quarter deadline.

    Q. I’ve already upgraded. What next?

    A. Refer to our step by step guideline outlined above. If you would prefer a consultant to help with 1st Making Tax Digital return then your account manager can arrange this either as a remote session or on site.

    Q. I’ve not agreed to upgrade. I don’t have Making Tax Digital compliance. What do I do?

    A. We will endeavour to accommodate you as the deadline approaches. Please discuss with your account manager as soon as possible. You may need to purchase Sage’s Making Tax Digital tool if an upgrade cannot be achieved in time.