Updated: Nov 30, 2018
MAKING TAX DIGITAL FOR VAT
The new Making Tax Digital (MTD) regime will be phased in by H M Revenue and Customs and will ultimately require tax payers to move to a fully digital system. The first area to be affected by MTD will be VAT with the new rules being implemented from April 2019.
Under the regulations, businesses with taxable turnover above the VAT threshold (currently £85,000) must keep digital records for VAT purposes and provide their VAT return information to
H M Revenue and Customs using ‘functional compatible software’. These new regulations take effect for VAT return periods beginning on or after 1st April 2019.
Under the new MTD regulations, businesses will have to use ‘functional compatible software’. This means a ‘software program or set of compatible software programs which can connect to
H M Revenue and Customs systems via an Application Programming Interface (API)’. This must be capable of:
Keeping records in digital form as specified by the new rules
Preserving digital records in digital form
Creating a VAT return from the digital records held in compatible software and submitting
this data to H M Revenue and Customs digitally
Providing H M Revenue and Customs with VAT data on a voluntary basis
Receiving, via the API platform, information from H M Revenue and Customs to ascertain
We promote, supply and train our clients on compatible software.
Rose Rowland, BSc (Hons) FCA
Rose Rowland & Co, Chartered Accountants High Street, Weaverham, Northwich, CW8 3HA
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Link below for compatable software licenced by HMRC