Making Tax Digital – can we help?

Making Tax Digital for VAT… is it going for you so far?

From April 2019, the government’s Making Tax Digital (MTD) campaign has applied to the online filing of digital VAT returns. Businesses will have received instructions from HMRC advising of the steps to take.

All VAT registered businesses with a turnover greater than the VAT threshold, currently £85,000 p.a. (including unincorporated businesses, companies, LLPs and charities) will be required to file their quarterly VAT returns online. They will also be expected to keep and maintain digital VAT records.

Are there any exemptions from digital VAT filing?

Yes. If turnover is below the VAT threshold, there is an automatic exemption from digital VAT filing.


HMRC is currently working with software providers over a suitable product but unlike the HMRC’s personal tax return software, it is not expected to be free.

The software will need to:

  • Keep and preserve records in a digital form
  • Produce a VAT return from these records
  • Provide VAT data to HMRC on a voluntary basis
  • Communicate with HMRC’s software in order to receive information and messages/alerts, such as reminders of filing dates etc

What information needs to be kept digitally?

It’s important to note that there will be no need to make and store invoices and receipts digitally. These can be kept in their original paper form. However, transactions will need to be stored digitally and all records should be kept for 6 years. Businesses are required to store other types of information digitally, including supplies/purchase data and amounts used in the VAT account.

We appreciate that this represents yet more change and are here to help you understand your obligations under MTD for VAT.

If we already file your VAT returns or you would like us to do so, these changes will have minimal effect on you and your business.

If you file your own VAT return, we can support you and ensure you are complying with the new rules.

Please contact [email protected] or call 01527 558539 to discuss your VAT requirements. We’ve also produced a short video with the key points of Making Tax Digital for VAT.

Or, visit our website to find out about our other services and how we can help your business. More information can also be found on the HMRC website.

Making Tax Digital