by Ruth Corkin
Making Tax Digital (MTD) is on its way for all VAT registered businesses. So what does this actually mean for taxpayers? If your business is VAT registered and you don’t currently file your VAT via MTD, you will need to comply by April 2022. If you take the figures calculated for the return and manually type them into a VAT return template on HMRC’s website, this is not MTD.
This facility will be removed for all apart from the most technologically averse taxpayers. The return will need to be filed via accounting software or Application Program Interface (“API”) enabled technology (API is the method used to “talk” to HMRC’s computers and is currently used by banks etc. for app based banking).
Are you ready for this significant change? Do you have any manual processes when completing your VAT return? Do you know what HMRC will do with the data? Will it stop at the return or will more information be required over time? All these questions and more will be addressed at our workshops in November.
Making Tax Digital webinar