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
