Tax recording will be more accurate, providing fewer opportunities for errors, miscalculations and fraudulent activity.
The process will be faster and more automated for businesses, accountants and HMRC, helping them save valuable time.
With the right software, Making Tax Digital will make it easier for small businesses to record and file their tax returns online.
Starting April 2019
Above the VAT threshold
MTD compliant software
Building to MTD API
New VAT experience
Guides & support
Making Tax Digital for VAT starts from 1st April 2019. Any VAT returns that begin on or after this date must follow the Making Tax Digital rules.
It impacts VAT registered businesses with a taxable turnover above the VAT threshold (currently £85,000) in the 12 months leading up to 1st April 2019 or any 12 month period thereafter.
Making Tax Digital for VAT does not impact businesses who meet one or more of the following criteria:
A list is available on GOV.UK or you can try Xero today. HMRC are not offering Making Tax Digital software.
Unless your VAT returns are being submitted through software that has been approved by HMRC as being Making Tax Digital compliant then you are not already compliant. From 1st April 2019, the HMRC web page used by businesses and their accountants to submit VAT returns will be closed to those required to comply with Making Tax Digital.
Accountants can support you through Making Tax Digital so long as they have the following: