Making Tax Digital (MTD) for VAT
By Diana Hurta
31 Mar 2019

Making Tax Digital for VAT requires VAT registered business with a taxable turnover above the VAT registration threshold (currently £85,000) to keep digital VAT business records and send returns using Making Tax Digital (MTD)-compatible software. The vast majority of businesses will need to do this for VAT periods starting on or after 1 April 2019.

Records that you need to keep digitally for MTD for VAT

MTD does not require you to keep additional records for VAT, but to record them digitally.

Your digital records should include, for each supply, the time of supply (tax point), the value of the supply (net excluding VAT) and the rate of VAT charged. They should also include information about your business, including business name and principle business address, as well as your VAT registration number and details of any VAT accounting schemes you use.

MTD-compatible software

Compatible software is a software which businesses use must be capable of keeping and maintaining the records specified in the regulations, preparing their VAT Returns using the information maintained in those digital records and communicating with HMRC digitally via our Application Programming Interface (API) platform.

If in doubt, businesses should discuss with their agent or software provider.

We are partners with Sage and the software is compatible with Making Tax Digital for VAT and let us to submit returns for our clients as a tax agent firm.

More information about Making Tax Digital for VAT and when you need to join, you can find on GOV.UK.