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

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

VAT Controller

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