Making Tax Digital (MTD)

Making Tax Digital is a significant change to the way we file our VAT – but what does it mean for your business? For VAT periods beginning on or after 1 April 2019, most businesses that are VAT registered and make taxable supplies over £85,000 will no longer be able to use HMRC's portal and will need to file VAT returns using API enabled software.

The options available to you depend on your existing system. If you currently use accounting software you should check what upgrades they are providing as not all software developers are providing a solution for Making Tax Digital. Check also if there are any associated costs.

If you currently use spreadsheets for your accounts then you will need to use bridging software to digitally file your VAT return with HMRC as you will not be able to use the existing portal.

There are a few exemptions to MTD but HMRC will assume you are in unless you notify them of your exemption before your mandatory start date – from 1 April 2019 for most businesses. 

For more complex businesses (VAT groups, Payments on Account clients etc.), the mandatory start date is now from 1 October 2019 (announced 16 October 2018)

Not sure what to do about Making Tax Digital? ​Complete our MTD checker and we'll help you find the right solution for you. 

HMRC has a step by step guide on what to do https://www.gov.uk/guidance/making-tax-digital-for-vat

If you have any questions or concerns about MTD, our MTD Guru Ruth Corkin is here to help. 

VAT Controller

Related content

Capture
Making Tax Digital seminar
Highlights from Ruth Corkin and Heather Elliot presentation from the ...
Read more
helloquence-61189-unsplash
Making Tax Digital - VAT notice and software providers
HMRC have published a VAT Notice which provides technical guidance......
Read more
Making tax digital next steps
VAT Controller: A simple solution to Making Tax Digital
Not sure what to do about Making Tax Digital? Our ...
Read more

Get in touch today

  • logo-02
  • ICAEW_CharteredAccountants_BLK_RGB1
  • logo-05
  • logo-06

Hillier Hopkins is a trading name of Hillier Hopkins LLP, which is registered as a Limited Liability Partnership in England & Wales, No. OC303707. Registered Office: Radius House, 51 Clarendon Road, Watford, Herts WD17 1HP. Registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England & Wales. A list of members of the LLP is available at the above address. HH and Hi logos are trade marks belonging to Hillier Hopkins LLP. © Hillier Hopkins LLP.