Making Tax Digital

Welcome to our Making Tax Digital page, where you’ll find the latest information, analysis and practical guidance on what Making Tax Digital will mean for you.

Making Tax Digital is the Government’s plan to modernise and digitalise the UK tax system. Ultimately, this will have significant implications for both businesses and individuals.

What is Making Tax Digital?

MTD for VAT started in April 2019. It will require businesses to:

a) keep records in a digital format and

b) submit VAT returns using commercial software (not via the existing government gateway account as many returns are filed at present). The detailed requirements have been published by HMRC in VAT Notice 700/22:

MTD for individuals: the Personal Tax Account                                                                                   

Digital tax accounts for individuals – Personal Tax Accounts (PTAs) – have already been created by HMRC. The accounts are pre-populated with information already held by HMRC. PTAs are set to be developed further and taxpayers will be able to report any additional sources of income through their digital account.

Individuals may wish to register for a personal tax account by visiting www.gov.uk/personal-tax-account.

MTD for businesses: the revised timescales

Under the revised timetable, starting from 1 April 2019 those businesses with a turnover above the VAT threshold (currently £85,000) will have to keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software. The MTD requirement will remain even if turnover subsequently falls below the VAT threshold.

Unless the business meets one of the exemption requirements as outlined below

Exemptions from MTD

Some business may be able to claim exemption from MTD if any of the following apply:

  • On religious grounds, if the business is run entirely by practising members of a religious society for whom compliance with MTD is incompatible with their beliefs.
  • If it is not reasonably practicable for the business to use digital tools to keep records for reasons of age, disability, remoteness of location or for any other reason.
  • The business is subject to an insolvency procedure.

If businesses believe that they fall into one of these categories they will need to contact the HMRC VAT Helpline to discuss alternative processes for submitting VAT information. Exemption applications are now open at HMRC.

› Download our free guide on all you need to know about Making Tax Digital 2018-19

How can Ward Williams help you?

We have become increasingly aware that some software providers are charging significant additional fees for the provision of API enabled software.

There is no need for you to worry about upgrading/changing your existing software to API enabled software.  Whatever format your VAT records are maintained in, Ward Williams have already helped hundred of clients become compliant and submit their MTD VAT returns.

Ward Williams works with the below HMRC approved software providers for MTD for VAT.

Xero           

Please contact us to discuss your individual needs and specific advice on how we will be able to help you on enquiries@wardwilliams.co.uk or call 01932 830664.

Specialists

Andrew Webb
Business Services Director
andrew.webb@wardwilliams.co.uk