HMRC have amended VAT notice 700/22 to provide further guidance on the use of supplier statements, petty cash transactions and charity fundraising events.

VAT Notice 700/22: Making Tax Digital for VAT was first issued in July 2018 and sets out who needs to follow the MTD rules, what records need to be kept, and what agents need to do. It has now been revised to include the following new guidance:

Supplier statements:

  • Where a supplier issues a statement for a period you may record the totals from the supplier statement (rather than the individual invoices) provided all supplies on the statement are to be included on the same return and the total VAT charged at each rate is shown.

Petty cash:

  • Where a business uses petty cash to pay for small value items, these do not need to be individually recorded in the digital records. The business can record the total value and the total input tax allowable where the individual purchase has a VAT-inclusive value below £50 and the total value of petty cash transactions recorded in this way does not exceed £500 including VAT per entry.

Charity fundraising events:

  • Where supplies are made or received during a charity fundraising event run by volunteers you may treat all supplies made as covered by one invoice for the event, and all supplies received as covered by one invoice for the event, for the purposes of the digital record keeping requirements.

Links to our guides:

Making Tax Digital: VAT (subscriber guide)

Making Tax Digital (for VAT) tool: who has to join?

Vat Notice 700/22: Making Tax Digital for VAT

Link to VAT notice:

VAT Notice 700/22: Making Tax Digital for VAT

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