Making Tax Digital (MTD) is a government program that outlines a bigger vision for a digital tax system that would make it easier for businesses to file correct and timely taxes.
Making Tax Digital is now focused solely on VAT filings. However, it is expected that in coming years, it will also cover Income Tax and Corporation Tax.
From November 1st, MTD will be the only way to file your VAT. VAT filings on the HMRC website are no longer possible due to the closure of the portal.
Businesses must maintain digital records to comply with Making Tax Digital for VAT. This must be done using 'MTD-compatible software. It must connect directly to HMRC and convey your information via digital links.
MTD was implemented in April 2019 for practically all VAT-registered enterprises with a taxable turnover of above £85,000. They must use Making Tax Digital software to retain digital records and submit VAT to HMRC.
This will be applied to all VAT-registered firms in the UK from April 2022.
Don’t panic, we got you covered in this scenario. File VAT returns with Moneypex a MTD compatible accounting software easily.
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