I keep handwritten sales records. Am I breaking the law now MTD for VAT is here.
MTD impacts on businesses that are VAT registered at £85,000 or over the annual turnover, so they have to be registered for VAT. At this moment in time, HMRC want you to submit through an accounting software. For a time efficiency point of view, I would say you’re better off raising the sales invoices through an accounting software, and then that way, that falls into the MTD report, which goes to HMRC, and you tick all the MTD boxes.
Eventually, the long term goal of MTD is that HMRC can ask for your electronic records for their so they can do a VAT inspection, as it were, by looking at QuickBooks, or your other accounting software’s. Now, that would then mean you need to raise your sales electronically, and keep electronic copies of your expenses. If you use a till, that’s fine, because that is keeping a record as well, but we don’t know when HMRC are going to be at that point, that they want to have anything electronic. At the moment, they’re happy if the data is going through a software such as QuickBooks, and then being transmitted to their MTD portal. That’s ticking their rules at this moment in time.