Making Tax Digital for VAT (MTDfV) is new legislation that requires all VAT registered businesses with a taxable turnover above the current £85k threshold, to keep their records digitally and submit their VAT Returns using MTD compatible software, such as Quickbooks, Xero or Sage. Businesses affected by MTDfV will no longer be able to use HMRC Online Services to submit their returns.
VAT registered businesses below the threshold can join voluntarily.
The majority of businesses will have been affected from the first VAT period starting on or after 1 April 2019. For example, if your VAT period started on 1 April then you must have kept digital records from that date and submit VAT Returns using MTD compatible software. If your first VAT period started on 1 May 2019, then you must have kept digital records from that date and submit VAT Returns using MTD compatible software.
MTDfV registration is not automatic, if you haven’t already you’ll need to sign up your business with HM Revenue and Customs using your existing Government Gateway Login and VAT Number and follow the link to learn more about MTDfV. Once you’ve authorised your accounting software to connect with HMRC you will then be able to submit MTD VAT Returns directly from the software.
HM Revenue and Customs have not yet confirmed when other taxes (i.e. personal tax, corporation tax) will be mandated but we will keep you informed when this happens.
We would welcome the opportunity to discuss how we can help with your record keeping to meet your MTDfV obligations.