From 1st April 2019 the bulk* of VAT-registered businesses with a taxable turnover above the VAT threshold (currently £85,000) will need to:
- Keep their records digitally (for VAT purposes only), and
- Provide their VAT return information to HM Revenue and Customs (HMRC) through Making Tax Digital (MTD) functional compatible software
If your mandation date is 1st April 2019, you must start following the MTD for VAT rules from the first day of your first VAT period that starts on or after 1st April 2019. HMRC has issued guidance to help you prepare.
MTDfVAT is a simple, secure and affordable cloud-based solution to help you meet the new MTD for VAT filing requirements.
*Note: Roughly 3.5% of VAT-registered entities with complex VAT arrangements will be mandated into MTD for VAT from 1 October 2019 instead. These include trusts, not-for-profit organisations that are not companies (including some charities), traders based overseas, those required to make payments on account and annual accounting scheme users. See the full list here.