Making Tax Digital is here. Are you ready?

•  Making Tax Digital (MTD), which came in efect on 1 April 2019, is a legislation from HMRC that means VAT-registered businesses with a taxable turnover above the VAT threshold (currently £85,000) must submit their VAT returns via compatible software and keep their VAT records digitally.

• In order to use Making Tax Digital for VAT your business must have registered with HMRC for the service in time for your VAT return deadline.

• Please note that your business is not enrolled automatically even though MTD for VAT is mandatory, and even if you’ve previously filed your VAT returns using the old method via the VAT portal website.

•  MTD does not require you to keep additional records for VAT, but to record them digitally. 

• You can use spreadsheets to keep business records, but you’ll need MTD-compatible software so that you can send HMRC your VAT returns and receive information back from HMRC.

Please contact us today for a free consultation.