On 18 December 2017, HMRC published the draft VAT secondary legislation together with examples of how the business account records might link with the HMRC computer in order to comply with MTD for VAT.
The legislation specifies that “functional compatible software” must be used to record and preserve prescribed VAT related data.
In this months MTD Action Pack we review the draft Statutory Instrument and comment on what is meant by “Functional Compatible Software”.
Chapter 1 of the Action Pack has been updated to include the draft regulations.
HMRC OUTLINES POINTS – BASED PENALTY MODEL FOR MTD
HMRC has published details of the penalties system for late submissions and payments under Making Tax Digital, confirming it plans to pursue a points-based model.
In the update we outline the proposals and what we can expect in 2020 when the system will come into effect.
Further information can be found in Chapter 11 of the Action Pack. This replaces the original chapter on the Agency Services Webinar which HMRC have withdrawn.
This has been changed to 2018 in the Action Pack text and excel spreadsheet.
Updates and interpretations look likely to come thick and fast in 2018 and we will keep you regularly updated.