In recent days, HM Revenue & Customs (HMRC) has published a series of new documents that it claims will provide businesses with “additional clarity” on Making Tax Digital (MTD).
The new documents, which come less than a year before VAT-registered businesses earning more than £85,000 a year will need to be fully MTD-compliant, aim to provide businesses with more information about MTD and what they need to do ahead of April 2019.
HMRC’s new VAT Notice, explains what digital records VAT-registered businesses will need to keep as part of MTD for VAT, as well as what systems and programmes will count as ‘functional compatible software’ for submitting VAT information to HMRC.
Further to this, the Revenue has also published a list of software suppliers that support MTD for VAT which, at current, include the likes of Intuit, Clear Books, Xero and more.
Finally, HMRC has published a stakeholder communications pack which it says will provide “stakeholders with information to support businesses that need to make the transition to digital VAT business record-keeping.”
Alongside the publication of the new documents, the tax authority has warned that MTD for VAT is, quite literally, just around the corner – due to be phased in from 1 April 2019.
“As part of MTD, businesses registered for VAT with a taxable turnover above the VAT registration threshold of £85,000 will need to keep VAT records digitally and file their VAT returns using MTD compatible software [from this date],” it said.
The new documents can be accessed in full here.