What is Making Tax Digital (MTD) for VAT
VAT Returns must now be digital in compliance with Making Tax Digital (MTD) for VAT. Sounds scary but it’s not. Read on:
Making Tax Digital (MTD) is the HMRC programme requiring businesses to hold their accounting records digitally, ie on computer (accounting software, or spreadsheet).
After a couple of false starts, which caused a lot of confusion, the first tax to which MTD is to be applied is VAT. It is intended that other taxes are to follow in the coming years.
That means that from now on all entities that submit VAT Returns (except for a very few exceptions) have to submit digitally (ie by computer and API).
This means that you can no longer type your VAT Return figures into the HMRC portal. The manual VAT Return portal has been closed to all but a few exceptions and submission will only be possible via Making Tax Digital compliant software. That can be either
- accounting software, or
- spreadsheet
If you keep your accounts on spreadsheet, you will need to submit your VAT Return via Bridging Software (API), such as The Tax Kit’s.
Sounds complex, but it isn’t.
Just plug The Tax Kit Bridging Tool into your accounts spreadsheet,
link the relevant cells
and submit your VAT return in compliance with MTD.
It’s as simple as that.
All that is required is a little work to register for MTD for VAT with HMRC and register with our application – and you’re good to go.
Complying with Making Tax Digital for VAT is as simple as that.
Keep your spreadsheet. No need for the unnecessary cost and hassle of complicated accounting software that you don’t need.
The Tax Kit Bridging App:
- Simple to use
- Cheap
- Compliant
https://thetaxkit.co.uk/index.html#how-does-it-work
Images:
Digital keys: “Digits” by Possessed Photography on Unsplash
Hot Air Balloons: “Dreams” by Pars Sahin on Unsplash
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MTD for VAT: Your questions answered
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March 2, 2023 at 5:30 pm