MTD for VAT has been in place for nearly two years now, and the soft-landing for the digital links element of the system is being withdrawn. For VAT periods beginning on and after 1 April 2021 businesses must have digital links in place between the different software packages that make up their VAT accounting system.
Where the business has a complex or legacy IT system, which is making it difficult to install digital links, it can apply for an extension of the soft-landing period. However, that application must be submitted before the start of the VAT period that begins on or after 1 April 2021.
HMRC are running a webinar on digital links to help us brush-up on this topic. There are ten opportunities to join this live webinar and ask questions.
The Agent Services Account (ASA), which is our core tool for managing clients’ affairs under MTD, has been revamped. It should now be more obvious where to find key services, like client authorisation.
The tax services accessible through the ASA are now compacted into four “accordions”:
- Making tax digital for VAT
- Trusts and estates
- Capitals gains on UK property
- Other tax services
We need to click on the plus sign to expand the detail of each service.
The ‘Other tax services’ are those older online tax services which cannot currently be accessed through the ASA. The links will take you those legacy services, including corporation tax for agents, PAYE for agents, self-assessment for agents and ATED returns.
Written by the Tax Advice Network