Making Tax Digital is part of the government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
The government’s Making Tax Digital scheme is making fundamental changes to the way the tax system works, with the intention of making tax administration easier, more effective and more efficient.
The first stage of the Making Tax Digital (MTD) initiative is the introduction of Making Tax Digital for VAT. The key points of this MTD stage are that all VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns from 1st April 2019.
VAT Notice 700/22: Making Tax Digital for VAT provides further information to customers and adds to amendments to the VAT Regulations made earlier in 2018. The notice also gives guidance on the digital record keeping and return requirements of MTD for VAT.
A pilot scheme is already underway for some software and some VAT registered companies whose VAT activities are considered ‘straightforward’. However, all companies (unless they meet the HMRC criteria of having more ‘complex requirements’) will have to submit their VAT returns via their software from 1st April 2019.
Insight Legal Software will be compliant with the HMRC requirement for direct VAT submissions in plenty of time for the 1st April deadline.