Making Tax Digital for VAT
The Government’s Making Tax Digital (MTD) initiative has been grabbing many headlines of late and is set to overhaul the existing taxation system in favour of online tax compliance.
From 1 April 2019 all Value Added Tax (VAT) registered businesses and organisations with taxable turnover above the VAT threshold of £85,000 must provide their VAT return data to HMRC digitally.
In order to meet the MTD for VAT requirements businesses must:
- Maintain digital accounting records in a software product or spreadsheet;
- Submit their VAT returns to HMRC using a software product that is compatible with HMRC’s Application Program Interfaces (API) platform.
Keeping paper records and hard typing figures into to a VAT100 form will no longer meet legal requirements. An electronic link back to the original sales and purchases information will be necessary in order to comply.
Gibson and Company can help you to transfer your records on to an appropriate software system and we can prepare and submit VAT returns which will meet the MTD for VAT requirements. Please contact us on 018907 52888 if you would like our assistance.
It is important to note that businesses which are voluntarily registered for VAT, with a turnover below £85,000, are excluded from MTD for VAT at present and can continue to make their online VAT submissions in the traditional format.