Making Tax Digital - Are your franchisees ready?
For most VAT registered businesses, all VAT submissions for periods starting from April 2019 will need to submit their returns using a MTD compliant system.
So whilst Making Tax Digital comes into force in April, the first submissions that have to be made via MTD do not need to happen until July at the earliest – because the first VAT period covered is April 2019 to June 2019 inclusive.
For franchisees using Webchise finances, there will be very little change, because Webchise is the UK's only franchise system to be approved for Making Tax Digital VAT submissions.
The VAT return is calculated and locked as usual and then the Submission to HMRC can be started via a set of simple steps.
However, before a franchisee can submit a Making Tax Digital VAT reurn they will need to have a Government Gateway account and then at the right time register with the Inland Revenue to switch to MTD submissions using this link:
So when is the right time to register?
Our suggestion is that they register to switch after their return for the current period has been submitted, because as soon as they register to submit via MTD, all returns have to be submitted that way.
If you would like to know more about how Making Tax Digital will affect your franchise network, please contact us using the form below.