HMRC have now issued detailed guidance on record keeping and return requirements for Making Tax Digital (MTD).

VAT Notice 700/22 clarifies that spreadsheets are an acceptable means of keeping business records, provided that a bridging software is used to link the excel documents to the Government Gateway. It includes a number of suggested accounting systems that can be used to comply with MTD for VAT.

Do I need to comply with MTD for VAT?

You must comply with the regulation if:

  • You are already a business with a taxable turnover
  • A business whose taxable turnover this year will exceed the threshold by the 1 April 2019
  • Your business is already VAT registered, even if your turnover does not exceed the threshold

The VAT taxable turnover is £85,000. MTD for VAT will apply for the period beginning 1 April 2019, though HMRC have allowed a ‘grace’ period of a year to allow businesses to get up to speed with the new regulation.

If you would like any assistance with Making Tax Digital or any other financial advice, please do not hesitate to us on 01295 477 250 alternatively you can email hello@progresswithassureuk.co.uk

 

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