Frequently Asked Question

Under MTD you must

• keep digital business records and:
• submit you VAT Returns to HMRC using MTD-compatible software

So, what does that mean?

Digital Business Records:

All the accounting entries must now be on computer – you can no longer write them into a book manually.
In addition, anything else (eg calculations etc) must also be managed digitally (ie on computer).
The summary information must not be physically re-typed into another software package.

If you were previously using a spreadsheet or accounting software for your accounts, then it’s likely that you’re already keeping your records digitally as required under MTD – ie you’re keeping them on computer.

You must keep copies of your invoices or receipts, but these can be either paper originals or electronic copies – that’s up to you.

You must keep your records, including the invoices and receipts, for at least 6 years (unless you are operating under special requirements that requires longer).


Submission of VAT Returns digitally:

The submission of your VAT Return to HMRC must also be actioned digitally via MTD compatible software.

MTD compatible software 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 HMRC for MTD, 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.