Your Making Tax Digital centre
As Making Tax Digital (MTD) approaches, keep up to date and explore the free resources, articles and policy updates that AAT provides in order to support you, your business and your clients through the forthcoming transition.
Your MTD resources
Access our articles and resources, designed to support you, your business or your clients through all of the upcoming MTD changes, including:
- HMRC guidance on how and when to sign up your business (or your clients) for MTD for VAT (30 July 2019)
- Tackling MTD as a larger organisation (21 June 2019)
- Everything you wanted to know about MTD but were too afraid to ask (23 May 2019)
- Guidance on applying for an exemption from MTD for VAT (April 2019)
- Making Tax Digital – VAT software guide (ebook)
- Making Tax Digital: how VAT businesses and other VAT entities can get ready
- HMRC guides for MTD
- To find out more about how BTCSoftware can help you become MTD Ready, please visit their website (sponsored content)
Are you a current AAT member?
Visit the Knowledge Hub for more exclusive MTD resources including:
- Making Tax Digital VAT: Where are we now? (webinar)
- Making Tax Digital moves up another gear (podcast)
HMRC has updated VAT Notice 700/22 to cover exemptions from MTD and included an outline of the process for application. The relevant part of the Notice is Section 3.
- Find software that's compatible with MTD for VAT
- Find software that's compatible with MTD for Income Tax
HMRC has launched the first iteration of the VAT software choices viewer with a filter function, allowing the user to filter products according to criteria such as:
- whether the product is for a business and/or agent
- what features the products has (such view VAT returns, check what VAT you owe)
- whether it’s bridging software or full digital record keeping.
There are now over 200 MTD-compatible VAT products available. HMRC will continue to improve the filters in order to further enhance the customer experience.
Upcoming MTD events
AAT holds numerous MTD-related events across the UK, providing information, insight and updates and a chance to pose questions on one of the most important changes to the British tax system in a generation.
Join HMRC's live webinar, where you will be able to ask questions using the on-screen text box.
This webinar gives an overview of MTD and includes digital record keeping, compatible software, signing up for MTD, working with agents and submitting VAT returns directly from the business.
MTD – your Agent Services Account
This webinar will provide the latest information, including the new Agent Services Account and signing clients up to MTD.
On HMRC’s YouTube channel is a video on Digital record keeping for VAT that you may find helpful.
The story so far
Additional time (17 October 2019)
If your client or employer is having issues meeting the Making Tax Digital for VAT requirements, note that from 17 October 2019 customers can apply to HMRC for additional time. More information can be found in section 4.2 .1.3 of VAT Notice 700/22.
Further HMRC update on implementation (18 September 2019)
HMRC has advised that over 1.1 million businesses have signed up to the VAT service with over 1.2 million submissions.
HMRC update on reaching an MTD implementation milestone (19 August 2019)
HMRC has announced that there are now nearly a million businesses in the Making Tax Digital for VAT service, and they've made over 900,000 VAT submissions.
Signing up for MTD for VAT (26 July 2019)
HMRC will send an email to customers who have signed up for MTD for VAT, to confirm that you can submit VAT returns within 72 hours using the email you provided. The HMRC email will be sent from firstname.lastname@example.org and will not ask you for any financial information.
Improvements to the Agent Services Account (10 July 2019)
HMRC has advised about some improvements to the Agent Services Account (ASA).
- You are now able to track the status of authorisation requests made in the last 30 days. This is where an agent has used the new digital authorisation route from ASA to authorise a new client.
- In response to user feedback HMRC has renamed the "link your clients" step to "copy your clients". They have updated GOV.UK to reflect this and revised the ASA step-by-step guide to show the change.
- HMRC has delivered new functionality that shows agents the number of client authorisations that they have copied over from HMRC online services.
VAT certificates (3 July 2019)
As from Wednesday 3 July 2019 most customers that have signed up (or have been signed up by their accountant) to MTD are now able to view their VAT certificate in their Business Tax Account.
The functionality for accountants to access this information will be delivered in August. Until then accountants should call the VAT helpline to request this information.
However, HMRC have advised that the functionality for a very small number of customers with non-standard accounting periods will not be delivered until later this year.
MTD update (17 June 2019)
MTD was mandated for VAT for the majority of customers from April 2019 and will be mandated for deferred customers who do not use the GIANT service from October 2019.
On 8 March 2019, HMRC updated its MTD Mythbusters factsheet.
On 20 December 2018, HMRC advised that partnerships are now able to voluntarily join the MTD VAT service and begin to test the service ahead of its introduction. HMRC has also updated its guidance to reflect the fact that Flat Rate Scheme users can now join the pilot.
AAT lobbying on MTD
Catch up on all of the policy work that AAT has already done to contribute to how MTD will roll out:
- AAT response to Making Tax Digital: interest harmonisation and sanction for late payments
- HMRC report confirms that the points-based system will be taken forward
- AAT had expressed concerns in our response to the proposals in the consultation document that preceded this report.
- AAT response to the consultation on “Making Tax Digital for VAT”: Legislation overview
See the latest MTD timeline
The timeline is on GOV.UK's MTD publications page: make sure you’re on track.