Making Tax Digital is part of the government’s plans to make it easier for individuals and businesses to get their tax right. This scheme is making fundamental changes to the way the tax system works. Above all, MTD intends to make tax administration easier and more efficient.
The first stage of the Making Tax Digital (MTD) initiative is the introduction of Making Tax Digital for VAT. For instance, all VAT-registered businesses with a taxable turnover above the VAT threshold will have to use the Making Tax Digital service from April 1st 2019. Companies will have to keep records digitally and use compatible software to submit their VAT returns. The HMRC will turn off the current portal on April 1st.
VAT Notice 700/22: Making Tax Digital for VAT provides further information on Making Tax Digital for VAT registered companies. The notice also gives guidance on the digital record keeping and return requirements of MTD for VAT.
All companies will have to submit their VAT returns using the MTD API via their accounts software from 1st April 2019.
Great news that Insight Legal Software is fully compliant with the HMRC requirement for direct VAT submissions and we have already seen a number of firms successfully submitting their digital VAT returns through the system.
Please visit this link to the HMRC website where you will find us listed as a compatible software supplier; https://www.gov.uk/guidance/software-for-sending-income-tax-updates