Making Tax Digital for UK VAT

Making Tax Digital for UK VAT

  

This notice is intended for customers that have a United Kingdom subsidiary or has a United Kingdom company address. If you are a UK VAT-registered company with a taxable turnover above £85,000, you must use the Making Tax Digital (MTD) system for VAT feature in keeping your VAT records and submitting your UK VAT100 Return to Her Majesty’s Revenue and Customs (HMRC).         What is Changing? Recommended Action At present, most businesses submit their VAT returns through manually rekeying data in the HMRC’s online portal. This will no longer be permitted once Making Tax Digital comes into force this April. Instead, VAT returns will be required to be submitted using MTD compliant software. For some businesses, the mandatory period starts October 2019. As of 11 January, HMRC has extended the pilot to more business types and are encouraging companies to sign up now and start submitting before the April deadline.