What is Making Tax Digital for VAT?
Making Tax Digital (MTD) for VAT is a HMRC initiative to help ensure businesses get their VAT right. It replaces HMRC's online VAT submission interface and stipulates that businesses must record and keep digital business records and use a compliant software solution to submit their VAT figures directly from their accounting software or spreadsheet.
All VAT registered businesses with a taxable turnover greater than £85,000 must use Making Tax Digital for VAT from the 1st April 2019. From the 1st April 2022 all VAT registered businesses will need to submit their VAT returns using Making Tax Digital for VAT. The accounting applications many of these businesses use may already be MTD for VAT compliant, but if not, or if they use a spreadsheet to record business records, they must use bridging software such as Easy MTD VAT to submit VAT returns.
For further details about Making Tax Digital for VAT, visit the following HMRC web page: