Making Tax Digital (MTD for VAT)
HMRC His Majesty's Revenue and Customs is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers. has changed the way that VAT Value Added Tax; A tax on the value added by a business to goods and services it provides. returns are submitted. UK VAT registered businesses with a taxable turnover The total sales made by business in a given period. of more than £85,000 must use the Making Tax Digital (MTD Making Tax Digital (MTD) is a UK government initiative that sets out to make tax administration more effective, more efficient and simpler for taxpayers. The first mandatory use of digital methods was for Value Added Tax, beginning in April 2019 for many businesses and organisations.) service to submit their VAT returns.
From 1st April 2022, all UK VAT registered businesses must use MTD to submit their VAT returns, irrespective of taxable turnover.
Don't worry - you can use IRIS KashFlow (which is MTD compatible) to record and manage all your VAT related data, then submit your return directly to HMRC.
There are three key steps to this process.
HMRC have announced, from Thursday 24 November 2022 all businesses, unless exempt or have applied for exemption, will be automatically signed up to MTD.
From 24th Nov. 2022 onwards users can enter their Government Gateway credentials in IRIS KashFlow to be successfully authenticated, enable retrieving obligations and start making submissions without having to perform the separate step of signing up to MTD via GOV.uk.
IRIS KashFlow Connect Partners: Agents will still need to be authorised to make submissions on behalf of their clients.
Once you've signed up for your MTD account with HMRC, you can then connect IRIS KashFlow to you HMRC account. Find out how
IRIS KashFlow automatically receives your VAT return dates (obligations) directly from HMRC. You can view VAT summary or detail reports, then submit to HMRC using the MTD service. Find out how