Making Tax Digital Workshop
From 1 April 2019, all VAT registered businesses with a turnover above the VAT threshold (currently £85,000) will be required to:
keep digital records for VAT purposes, and
provide their VAT return information to
HMRC using MTD ‘functional compatible software’.
The recording of supplies made and received must be digital. HMRC will not be offering software to do this and you will instead be required to use third party commercial software.
The use of spreadsheets will be allowed, but they will need to be combined with third party bridging software to convert this information into a format that is compatible with HMRC’s API (“Application Programme Interfaces”) platform. This bridging software is not yet available.
You should review how you currently collect the information to prepare your VAT Returns. If all or part of your records are kept on paper you will need to consider how best to digitise your records. You may wish to consider doing this from the start of the next accounting period to avoid changing systems part way through an accounting year.
In order to ease you through this transition, Hawsons are running Making Tax Digital Workshops.