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Making Tax Digital

From 1 April 2019, all VAT-registered businesses who meet the criteria are required to keep their VAT business records digitally and send their VAT returns using MTD-compatible software.

The primary aim of Making Tax Digital is to:

  • Make tax administration more effective
  • Make tax administration more efficient
  • Easier for taxpayers to manage returns and their accuracy
  • Reduce HMRC’s overheads for managing tax affairs

Many things won’t change

  • VAT Return Frequency
  • Payment deadlines
  • Eligibility for schemes

MTD for VAT is not changing what you do but how you do it. So who is affected:

  • VAT Registered businesses with a taxable turnover above the threshold must follow the MTD rules
  • VAT threshold is currently £85,000
  • From the first VAT period that starts on or after the 1 April 2019
find out more by downloading our guide