Making Tax Digital
What is Making Tax Digital?
For many companies with VAT return periods starting on 1 April 2019 are now required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT Returns. However, if your business’s taxable turnover is under £85,000, this will not apply to you.
You will need to keep digital records, sign up for Making Tax Digital with HMRC and then start submitting returns using MTD compatible software.
Can I use HMRC’s website to file my returns?
If you fit the above criteria, then you can no longer youHMRC to submit your returns. You will need to keep your files digitally andtherefore use a MTD compliant software to file your VAT returns.
What software can I use to file my returns going forward?
Most accounting software such as Xero, Quickbooks and Sage are MTD compliant. You can use any of these to file your VAT returns.