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Making Tax Digital for VAT

What is Making Tax Digital?

Making Tax Digital (MTD) is a Government initiative designed to “make it easier for individuals and businesses to get tax right and keep on top of their affairs”.

Making Tax Digital requires individuals and businesses to keep digital records (via spreadsheets or accounting software such as Sage) and submit their VAT returns digitally via HMRC’s online portal.

Making Tax Digital for VAT deadlines

April 2017	Private pilot of MTD rollout begins.
July – December 2017	HMRC begins a private pilot of MTD for VAT.
Spring 2018	Live pilot of MTD for VAT begins.
April 2019	Businesses with VATable sales above the VAT threshold are required to keep digital records and submit monthly, quarterly or annual returns for VAT purposes through their accounting software.
April 2021	VAT returns must be submitted via HMRC’s MTD connection. HMRC will no-longer accept VAT submissions made using the XML facility.
April 2022	VAT registered businesses with VATable sales below the compulsory registration threshold (£85,000 for 2021/22) must follow MTD rules for their first VAT return starting on or after April 2022.

More information about Making Tax Digital can be found on the Government website.

We hope that you find this information helpful. If you would like to find out how our team of accountants can help you with Making Tax Digital we invite you to contact us.

Find out more about Making Tax Digital for Income Tax Self Assessment.