Making Tax Digital: simplified

How to get your digital record keeping straight

• From April 2019, all compulsory VAT registered businesses will have to comply with making tax digital.
• This does not apply to those already exempt from online filing.
• You can still choose to join the service voluntarily even if your annual income is not over £85,000. It can still be a benefit to you to go digital.
• This will not change the information you have to send to HMRC. However, you will need the correct software to send it.
• If you receive a list of batch invoices in a supplier statement you will need to enter each invoice. You will not be able to enter just the statement total.
• The time of supply is the payment date for those using the cash account scheme.
• To get your accountant to submit these VAT returns for you, you will need to send the information digitally in good time or give them your invoices/receipts to allow them to record it in a digital form.
• Alternatively, you can submit your VAT returns yourself using compliant digital software (you will be able to find the list of compliant software HMRC has published here: https://www.gov.uk/guidance/software-for-sending-income-tax-updates#VAT ).
• All information must only be manually input once.

References: Business Database Tips & Advice
HMRC Gov website