What is Making Tax Digital?
Making Tax Digital (MTD) aims to simplify and transform the tax system. It affects how businesses and individuals maintain their accounting and tax records and how they transact and communicate with HM Revenue and Customs (HMRC).
Making Tax Digital came into effect from April 1, 2019 and is applicable to individuals/ businesses with a turnover above the VAT threshold.
Now, you must sign up for the Making Tax Digital service for VAT on the new portal. All VAT submissions must be made digitally through the MTD API on this portal.
Therefore, you need to ensure that:
- All VAT records are digital and maintained on a single digital platform
- VAT return information is shared with HMRC through a Making Tax Digital compatible software