Making VAT Digital
Making Tax Digital for VAT, or Making VAT Digital (MVD) this section sets out who needs to follow the MVD rules, what software to use, what records to keep, and what agents need to do.
It is important to keep a record of your actions in case you are later subject to some kind of fine or penalty for a compliance failure. After spending many days on trying to become compliant for Making Tax Digital for VAT I have decided to retain an online record of my efforts to be tax compliant.
According to HMRC's latest statistics on Making Tax Digital for VAT less than half of all VAT registered business have so far signed up for Making Tax Digital for VAT. At least a third (and maybe many more) of those who are supposed to be in the new system have not signed up or signed up and failed to file.
The ICAEW Tax Faculty has obtained clarification from HMRC on the availability of agent and business access to digital VAT services after a business has signed up to Making Tax Digital (MTD) for VAT. Copy your VAT certificate first!.
This Virtual Tax Partner © 'VtaxP' © tool checks Making tax digital for VAT. Will it apply to me? Am I exempted? Am I deferred. Do I need new software to file VAT returns online?
Timetable for Making Tax Digital for VAT - Making VAT Digital 'MVD'.
What is Making Tax Digital (MTD) for VAT? What is VAT 'functional compatible' software? What do you need to report their VAT? Are there penalties for making mistakes?
Businesses who are mandated into Making Tax Digital for VAT for VAT accounting periods starting on or after 1 April 2019 must use 'functional compatible software'.