Making Tax Digital for VAT

Making Tax Digital (“MTD”) for VAT came into force on 1 April 2019. As a result of these provisions, it is now mandatory for all VAT registered businesses with a taxable turnover above the registration threshold (currently £85,000) to keep digital records and submit their VAT returns quarterly through HMRC-approved software, using an application programming interface (API).

The previous method of submission via the HMRC portal is now unavailable. There are very limited circumstances for HMRC to approve any opt out.

In addition to the above digital submission requirement, certain data must be recorded digitally within ‘functional compatible software’ (FCS). The FCS can be a software program or a set of software programs (including spreadsheets provided certain conditions are met) that must be capable of:

  • Holding all the mandatory digital data as required under MTD;
  • Submitting the nine VAT return figures to HMRC for the MTD specific API;
  • Receiving information from HMRC via the API;
  • Transferring data between software programs via a ‘digital link’.

As this affects all VAT returns for VAT periods starting on or after 1 April 2019 (October 2019 for deferred business - see flyer for more information), individuals and businesses need to be following the new process.

Click here to view our webinar: Making Tax Digital: Are you ready?

Click here for our flyer: What is Making Tax Digital for MTD?

How we can help with Making Tax Digital for VAT

  • Help support you via our free webinars to learn more about MTD for VAT
  • Check if your accounting software is MTD ready and on HMRC's "approved" list
  • Consider options to use the Mazars "bridging software" if required
  • Complete a VAT review to ensure you are MTD compliant
  • Provide in-person training to your Tax team
  • Help you get ahead of the curve - other taxes are planned to go digital in 2020

Click here to download our step-by-step guide to ensuring your business is MTD compliant.

Click here to view our webinar on how a VAT MTD review may help: Making Tax Digital for VAT: How will you benefit?

Bridging software

Mazars offer an HMRC compatible software solution for businesses who are not able to submit MTD compliant VAT returns using their existing ERP system. 

Click here for an overview of Mazars' Making Tax Digital bridging software solution.

We have also prepared the attached guide with a handy reminder of the key dates and step by step instructions on how (and when) to sign up for the software and MTD for VAT with HMRC.

MTD for SME businesses

Click here to find out more about MTD for SME businesses  

Click here to view our webinar tailored for Entrepreneurial Businesses and Private Clients.

If you have any questions or would like to discuss the changes, please feel free to get in touch.

Your personal data is collected by Mazars in the United Kingdom, the data controller, in accordance with applicable laws and regulations. Fields marked with an asterisk are required. If any required field is left blank, it will not be possible to process your request. Your personal data is collected for the purpose of processing your request.

You have a right to access, correct and erase your data, and a right to object to or limit the processing of your data. You also have a right to data portability and the right to provide guidance on what happens to your data after your death. Finally, you have the right to lodge a complaint with a supervisory authority and a right not to be the subject of a decision based exclusively on automated processing, including profiling, that produces legal effects concerning you or significantly affects you in a similar way.


Making Tax Digital for VAT

Making Tax Digital for VAT

Making Tax Digital - Instructions

Making Tax Digital - Instructions

Making Tax Digital - Step-by-step guide

Making Tax Digital - Step-by-step guide