HMRC releases guides for VAT - Making Tax Digital
16 July 2018
HMRC have announced that the VAT Guide, the Software Suppliers Supporting Making Tax Digital List and the HMRC Stakeholders Communication pack are now up on the GOV.UK website. All can be found from the Making Tax Digital for VAT collection page.
Making Tax Digital for VAT requires VAT registered businesses with taxable turnover above the VAT registration threshold to keep records in digital form and file their VAT Returns using software. The VAT guide gives guidance on the digital record keeping and return requirements for Making Tax Digital for VAT. It is not a standalone document and should be read in conjunction with other VAT notices.
The Software Suppliers Supporting Making Tax Digital List however, shows that more than 130 software suppliers have stated their interest in providing software for MTD for VAT. Of the 130+ software suppliers, over 35 have said they’ll have software ready during the first phase of the VAT-MTD pilot. The pilot will be opened to allow more businesses and agents to join later this year.
AAT Tax Policy Advisor Brian Palmer says:
As I read it, there are just under 20 developers with VAT-MTD ready products.
Finally, The Stakeholders Communication pack is intended to provide stakeholders with information to support businesses that need to make the transition to digital VAT business record keeping and submission of VAT returns using MTD-compatible software from 1 April 2019.
Palmer says:
The publication of the VAT Guide, Software Supplier List and the Stakeholder Communications Pack means that for the first time those either advising on, or faced with, April 2019 VAT mandation will be in a better position to know what is expected of them and what they will need to do to be compliant in the brave new world of VAT-MTD. This also gives them a level of reassurance that MTD-compliant software is coming.
