From April 2019 businesses with a taxable turnover above the VAT threshold, currently £85,000, will have to keep their records digitally for VAT purposes and submit their VAT returns to HMRC through Making Tax Digital (MTD) compatible software. This is part of HMRC’s vision to make the tax system more effective, more efficient and easier for taxpayers to get their tax right.
HMRC have issued a new ‘VAT Notice’ (700/22 – link below), which explains in more detail than before the changes and outlines how MTD will work from April next year. They have also issued a ‘Stakeholder Communications Pack’ detailing the changes in a less formal manner, along with a list of software providers supporting MTD, links to both of these documents are also below.
If you have any queries regarding the changes, how these may affect you and how we can help, please contact us.
VAT Notice 700/22 - https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat
Stakeholder Communications Pack - https://www.gov.uk/government/publications/making-tax-digital-for-business-stakeholder-communications-pack/making-tax-digital-for-business-stakeholder-communications-pack
Software Suppliers supporting MTD - https://www.gov.uk/government/publications/software-suppliers-supporting-making-tax-digital-for-vat/software-suppliers-supporting-making-tax-digital-for-vat