HMRC are modernising the VAT system – get your business ready now
For accounting periods starting on or after 1 April 2019, VAT registered businesses with an annual taxable turnover above the VAT threshold of £85,000 must:
keep digital records for all VAT transactions
use compatible software to submit VAT returns to us
HMRC call this Making Tax Digital.
What you need to do
Ensure that you have access to some MTD compliant software. You can find a list of compatible software here
To register for Making Tax Digital, go to https://www.tax.service.gov.uk/vat-through-software/sign-up/have-software and complete the form.
Once you receive an email confirming the registration (normal takes around 72 hours), you need to connect your accounting software direct with HMRC. Contact your software provider if you are unsure how.
You are now ready to go with Making Tax Digital for VAT. You must record all sales/expenses on your software, and ensure that you submit your VAT returns through your software. HMRC will be closing down the submit a VAT return section on the government gateway.
If you are a VAT registered client of ours, and we complete your returns on your behalf, we’ve already completed these steps for you.
If you need any help or guidance with Making Tax Digital, please email us at hello@rltp.co.uk, or call us on 01332 238833
