MAKING TAX DIGITAL (MTD) is here
From 1 April 2019, all UK businesses above the £85,000 VAT threshold are now required to keep records digitally and submit VAT returns to HMRC using MTD-compatible software.
MTD applies to all VAT registered businesses i.e. sole traders, partnerships, companies, LLPs and charities, except those registered voluntarily i.e. with turnover of less than £85,000.
There will no longer be the option to file VAT returns via HMRC’s online portal. Everything will need to be filed via your accounting software.
MTD takes effect from the first VAT return period beginning on or after 1 April 2019.
There is a registration process to go through even if you already file VAT returns electronically.
Once registered all unfiled returns will need to be submitted under the MTD process. We therefore recommend registration only takes place once you have systems in place that are MTD compatible, and you have filed your last VAT return under the existing regime.
Please view this link for the registration process, or visit the ‘Sign up for Making Tax Digital for VAT’ page at HMRC.
If you need any further guidance, or have further questions, about MTD please do speak to us.