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What is Making Tax Digital for VAT?

From 1 April 2019 all VAT registered businesses (including charities) with a taxable turnover above the VAT threshold (£85,000) are required to keep their VAT business records digitally and send their VAT returns using Making Tax Digital (MTD) compatible software. 

HMRC has published VAT Notice 700/22: Making Tax Digital for VAT, which provides full guidance on how MTD will work in practice. 

Organisations with a VAT threshold over £85000 will need to use MTD ready software to submit their VAT returns.  Both Xero and QuickBooks are ready to go with this change so if you already use this software you will be ready to go.

If you have any questions please feel free to get in touch.