Making Tax Digital: is your VAT business ready?
As of 1 April 2019, the majority of VAT-registered businesses are subject to new requirements for bookkeeping and submitting returns. It is now mandatory for VAT-registered businesses above the VAT registration threshold (currently £85,000) to keep digital business records and send VAT returns using software compliant with the government’s Making Tax Digital (MTD) initiative. The aim of MTD is to make the tax system more effective, efficient and easier for taxpayers. If your business fulfils the criteria for MTD, you will need to keep your business records digitally from the start of your accounting period, using spreadsheets, software or any other digital products. You do not need to keep any additional records under MTD; you must simply record them digitally, ready for input into your VAT return. Your digital business records must include the following:
- your business name and address
- your VAT registration number
- a record of any VAT accounting schemes that you use
- details of the supplies your business makes and receives
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