Knowledge Base
Knowledgebase Support HMRC Useful links
Knowledgebase home
Tax Return Production
Accounts Production
Client Hub
Practice Management
VAT Filer
CloudConnect
Anti-Money Laundering
Support home
Hot Topics
SimpleStep Guides
Release Notes
Technical
Known Issues

HMRC Status
Useful Links
MTD for Agents MTD for Businesses What is MTD
Preparation
Agent Services Account
MTD for VAT
MTD for Income Tax
MTD for VAT
Digital Record Keeping
Quarterly Updates
Step-by-step Guide
HMRC's MTD Timeline
TaxCalc's MTD Journey

MTD for VAT - A Step by Step Guide for Businesses

As you may have already read, a business whose turnover is above £85,000 and, therefore VAT registered, must submit VAT returns under the new Making Tax Digital (MTD) service. What this means for you and your business really depends on your business’s individual circumstances.

Click on the link most relevant to your current situation for more information:

My business is VAT registered and I keep paper records

Every business that falls under the new Making Tax Digital (MTD) regime must keep digital records in order to comply with the requirements of MTD. This can be in the form of a spreadsheet, digital cashbook or bookkeeping software. It should include:

  • Your business name
  • The address of your principal place of business
  • Your VAT registration number
  • Any VAT accounting schemes that you use
  • A record for each supply made and received
  • The time of supply (tax point)
  • The value of the supply (the net value excluding VAT)
  • Rate of VAT charged
  • Amount of input tax being claimed

HMRC have confirmed that spreadsheets are an acceptable way of maintaining records and our VAT Filer software includes a quick and easy import routine to get your data from your spreadsheet into the program so that you can complete your VAT return. This is known as ‘bridging’ and ensures that you are complying with the requirements of Making Tax Digital.

Once you have decided which route you want to take to keep your digital records, you then need to make sure that your business has signed up for MTD using HMRC’s website.

My business is VAT registered and I keep spreadsheet records

If you are already maintaining spreadsheet records, you’re already on your way to meeting the obligations that Making Tax Digital (MTD) requires.

The records you maintain must include:

  • Your business name
  • The address of your principal place of business
  • Your VAT registration number
  • Any VAT accounting schemes that you use
  • A record for each supply made and received
  • The time of supply (tax point)
  • The value of the supply (the net value excluding VAT)
  • Rate of VAT charged
  • Amount of input tax being claimed

If you’re using a basic spreadsheet to record your transactions, it’s unlikely that this will provide you with the tools necessary to file your VAT return via the MTD service. HMRC does, however, accept spreadsheets as an acceptable way of maintaining records. TaxCalc’s VAT Filer for Business software includes a quick and easy import routine to get your data from your spreadsheet into the program so that you can produce your VAT return. This is known as ‘bridging’ and ensures that you’re complying with the requirements of Making Tax Digital.

Once you’ve decided which system you intend to use, you then need to make sure that your business has signed up for MTD.

My business is VAT registered and I use bookkeeping software

If you’re already using bookkeeping software, it’s likely that this will be MTD compliant, so you should talk to your software provider regarding submission of VAT returns using the MTD service.

My business is VAT registered and I have an accountant

If you already use an accountant or agent to complete your VAT return, we suggest talking to them regarding the requirements of Making Tax Digital.

How do I start using HMRC’s MTD Service?

A business needs to sign up to the MTD service before VAT returns can be successfully submitted.

To sign up, you will need:

  • Your government gateway user id and password
  • Your VAT registration number
SIGN UP HERE

You should receive a confirmation e-mail once the sign up process has been completed.

How do I send VAT returns under MTD using TaxCalc?

It couldn’t be quicker or easier to send VAT returns through HMRC’s MTD VAT service using VAT Filer for Business. As long as your business has been signed up to MTD using HMRC’s sign-up service, it’s just a few simple steps to create and send your VAT return to HMRC.

Follow the steps below to find out more:

VAT Filer for Business

If you’re ready and required to file VAT returns, TaxCalc’s VAT Filer for Business is a simple, quick and affordable solution.

From £20.00 (inc. VAT)

BUY NOW

or email our Support Team at support@taxcalc.com

Making Tax Digital for VAT Step 1: Setting up a business