Making Tax Digital

The way you send HMRC VAT information is changing

HMRC are changing how businesses need to keep their VAT records and submit their VAT returns - this is known as Making Tax Digital (MTD). All VAT registered businesses must use the service if they have a taxable turnover of, or above, the UK VAT registration threshold (currently (£85,000).

To use this service you will need to keep your VAT records digitally and submit VAT returns using software that works with MTD - we recommend Xero and FreeAgent. You will need to do this for your first VAT return for the period starting on or after 01Apr19. The date that you need to register & submit VAT Returns via MTD compliant software is determined by your VAT stagger, for example:

VAT Period MTD Deadline

01Apr19 – 30Jun19 07Aug19

01May19 – 31Jul19 07Sep19

01Jun19 – 31Aug19 07Oct19

Important

Once you have joined the service you will no longer be able to use the existing VAT system to submit your returns. So you need to make sure that you have software that works with Making Tax Digital before signing up. Click here for a list of our recommended MTD compliant software.

Once you are ready to join Making Tax Digital, click here.