Frequently Asked Question

Making Tax Digital (MTD) is the HMRC programme requiring businesses to hold their accounting records digitally, that is on computer (ie accounting software or spreadsheet).

The intention is that our online tax account will be similar to our online bank account, with easily accessible up-to-date information.

After a couple of false starts, which caused a lot of confusion, the first tax to cone under MTD is VAT. It is intended that other taxes are to follow in the coming years.

From now on all businesses that submit VAT Returns (except for a very few exceptions) have to submit digitally (ie by computer) in compliance with Making Tax Digital.

This means that you can no longer type your VAT Return figures into the HMRC portal. The manual VAT Return portal will be closed on 1st November 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, such as The Tax Kit’s.

All that is required is a little work to register with our application and authorise it with HMRC – and you’re good to go.

Complying with Making Tax Digital for VAT is as simple as that.

N.B. there is no longer a requirement to register for MTD for VAT, this is now automatic with your VAT Registration.