Using Making Tax Digital
MTD Making Tax Digital is a key part of the Government’s plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.
HMRC’s ambition is to become one of the most digitally advanced tax administrations in the world. MTD Making Tax Digital is making fundamental changes to the way the tax system works – transforming tax administration so that it is:
- more effective
- more efficient
- easier for taxpayers to get their tax right
VAT-registered businesses, with a taxable turnover above the VAT threshold, are required from the 1st April 2019 to use HMRC’s new MTD Making Tax Digital electronic service to submit their VAT Returns.
Further information about this change can be found on the Governments HMRC website.
However, if you are under the current HMRC threshold and submit a VAT126 return then this guide may not apply. The above is purely an indicator as to whether the following guide is applicable to you, your thresholds, returns and required submissions will need to be clarified between HMRC and your Finance Business Manager.