Making Tax Digital (MTD) – What to do next?
1. Check Sage Accounting software is MTD compliant (Sage 50 cloud Accounts V24.2) Pimbrook KB 5449
2. Prepare Data for MTD returns SKB 41887
3. Before you can start submitting VAT Returns under MTD you must prepare your data to ensure that the values you submit under MTD are correct. This includes:
- Ensuring you’re using the correct VAT settings. SKB 36914.
Note : do not tick Enable Making Tax Digital until you are ready to make your first submission.
- Ensuring you’re using the correct tax codes. – Default Tax Codes
- Reconciling transactions that were included in previous VAT Returns submitted to HMRC.
- Ensuring all transactions for the current VAT period are entered in Sage 50 Accounts.
- Ensuring any late entries from the previous VAT period are entered in Sage 50 Accounts
4. Register with HMRC for MTD SKB 42782 – must have software and data ready before you sign up as once registered your next return must be via the MTD system.
5. Tick Enable Making Tax Digital when you are ready to make your first submission
6. On the menu bar click Settings, click Company Preferences then click the VAT tab
7. Put tick in box Enable Making Tax Digital for VAT submissions.
8. Calculate and Submit VAT return SKB 41886