VAT & Making Tax Digital (MTD)

Ever changing regulations and the growing demands of HM Revenue & Customs (HMRC) mean VAT compliance can be a difficult administrative process, particularly with the introduction of Making Tax Digital with effect from 1 April 2019.

We can help to ensure that you comply with the regulations and that returns are compliantly filed. To help you manage this complex area, we provide an efficient, cost-effective VAT service.

Making Tax Digital is a significant change for businesses, particularly for those who have previously maintained their business records manually or on spreadsheets.

The first stage of HMRC’s Making Tax Digital programme focuses on VAT and imposes new requirements for digital recording keeping on VAT registered businesses and organisations from April 2019.

From April 2019 all VAT registered businesses and organisations with taxable turnover above the VAT threshold of £85,000 will be required to:

  • Maintain their accounting records digitally in a software product or spreadsheet. Maintaining paper records will cease to meet the legal requirements in tax legislation.
  • Submit their VAT returns to HMRC using a functional compatible software product that can access HMRC’s API (Application Program Interfaces) platform.

Businesses within scope will need to acquire a suitable commercial software product, or appoint an agent to submit returns to HMRC on their behalf.

HMRC’s online VAT return will remain available only to businesses that are voluntarily registered for VAT (i.e. businesses that complete a VAT return but have taxable turnover below the VAT threshold).

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