With less than six months to go until Making Tax Digital (MTD) for VAT applies, businesses should be preparing now for dealing with the new requirements, which represent the biggest change to the VAT compliance rules in decades.
What’s the issue?
From 1 April 2019, MTD will become compulsory for most VAT registered businesses with a taxable turnover above the VAT registration threshold (currently £85,000). Affected businesses will be required to:
- submit their VAT return data digitally using software compatible with HMRC’s Application Programming Interface (API) platform; and
- maintain digital records and a digital VAT account.