Making Tax Digital, What you need to Know!

Making Tax Digital for VAT (MTD) is a new way for VAT-registered businesses to keep records and file VAT returns. It was introduced in April 2019 and is now mandatory for all VAT-registered businesses in the UK.

Under MTD, businesses must keep their VAT records digitally and file their VAT returns using compatible software. This software must be able to:

Keep and maintain the records specified in the regulations.
Prepare VAT Returns using the information maintained in those digital records.
Communicate with HMRC digitally through their API platform.

There are a number of benefits to MTD for VAT, including:

Increased accuracy and efficiency in VAT compliance.
Reduced risk of errors and penalties.
Improved cash flow management.
Easier access to VAT refunds.

Sure, here is a blog post about the introduction of Making Tax Digital for VAT recording and filing VAT returns to HMRC:

Making Tax Digital for VAT: What You Need to Know

Under MTD, businesses must keep their VAT records digitally and file their VAT returns using compatible software. This software must be able to:

Keep and maintain the records specified in the regulations.
Prepare VAT Returns using the information maintained in those digital records.
Communicate with HMRC digitally through their API platform.

There are several benefits to MTD for VAT, including:

Increased accuracy and efficiency in VAT compliance.
Reduced risk of errors and penalties.
Improved cash flow management.
Easier access to VAT refunds.

If you are a VAT-registred business, you need to make sure that you are compliant with MTD.

At Barbara’s bookkeeping, we can help you go MTD.

There are a number of resources available to help you get started, including the HMRC website and the MTD for VAT Helpline.

MTD Software

There are a number of free MTD software options available, including:

My Tax Digital
FreeAgent – We use this software in our support for businesses becoming compliant with MTD
Xero
KashFlow

These software packages can help you to keep your VAT records digitally and file your VAT returns. They also offer a range of other features, such as invoicing, expense tracking, and accounting reports.

In conclusion.

MTD for VAT is a new way for VAT-registered businesses to keep records and file VAT returns. It offers a number of benefits, including increased accuracy and efficiency, reduced risk of errors and penalties, improved cash flow management, and easier access to VAT refunds. If you are a VAT-registered business, you need to make sure that you are compliant with MTD. There are a number of resources available to help you get started, including the HMRC website and the MTD for VAT Helpline.

I hope this blog post has been helpful. If you have any questions, please feel free to contact me and I can offer you support for your business becoming MTD compliant.