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Making tax digital

Many clubs that are VAT-registered, will be using spreadsheets to calculate their VAT liability, and the majority, if not all will be subject to complex partial exemption rules. From April 01 2019, all bar a small minority of VAT registered businesses* with taxable turnover above the VAT threshold will need to acquire a suitable commercial software product or appoint an agent to submit their VAT returns to HMRC on their behalf. Latest versions of Commercial software such as Sage or Quickbooks should be MTD compliant.

It will be a requirement to keep digital records; these can be maintained in more than one program or software product. The use of spreadsheets, either to record individual transactions or as part of a suite of software and spreadsheets is permitted. However, the spreadsheet will need to be either API enabled or used in combination with an MTD compatible software product so that data can be sent to and received from HMRC systems. Where the records are maintained in more than one program or product there must be digital links between each of the pieces of software.

More details on MTD can be found here.

The RYA has partnered with our advisors haysmacintyre to make Alphabridge available to our affiliates. There is a charge for this software, and the model is such that the price should reduce as more clubs sign up. Alphabridge provide user support, the product has the backing of UK based tax experts, your VAT data is secure and hosted in UK Data centres, the product works with multiple browsers and we are confident in their ability to support this product and develop it over time. They are a reputable company who have worked in the VAT sector and with haysmacintyre for many years. The software is provided by Tax Computer Systems Ltd which is used by 23 out of the top 25 accountancy firms.

There are alternative providers, Vital Tax is free and has some fans in the accounting world, NJT have a free demo of their paid product that you can experiment with and at least one of our clubs has chosen to work with Avalara

If you wish to discuss this further please contact

*A small minority of VAT-registered businesses with more complex requirements may be able to defer implementation until 1st October 2019. These will include unincorporated not-for-profit organisations and those within VAT groups. HMRC is identifying those deferred businesses and it should have written to them. If your organisation or club is not VAT-registered or is registered voluntarily no immediate action is necessary.

The RYA makes no representation or endorsement of the quality and service supplied by the companies or firms mentioned above. In no event will the RYA be liable for the consequences of any advice provided by these companies, or your use of them, and nothing in this article shall constitute tax or financial advice. The RYA recommends that affiliates obtain up to date advice on the topics raised by this article from an appropriate professional.

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