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MTD for VAT is here – are you ready?

Complying with the Making Tax Digital for VAT rules is now compulsory for all Vat registered businesses with a turnover exceeding £85,000.  All VAT records for VAT periods starting on or after 01 April 2019 must be kept ‘digitally’ and VAT returns must be submitted using MTD compliant software. So – working out your VAT figures on paper or Excel and then manually entering the figures into the VAT Return on your HMRC account won’t work anymore.

There area few exceptions and a delayed implementation for businesses with more complex VAT affairs. You can read about that here.

So – what to do. If you are already using bookkeeping software that is MTD compliant you can start submitting your VAT returns using that software. If you don’t want to use software and do or pay for bookkeeping there is only one option. You will need to keep your VAT records on Excel and use what is called ‘bridging software’ to submit your returns,

There are a number of different flavours of bridging software available. You just need to find the right one for you. If you need help – get in touch.