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Making Tax/VAT Digital

Making Tax Digital (MTD) is an initiative by HM Revenue & Customs (HMRC) to digitise tax administration. MTD aims to make tax payment for individuals and business effective, efficient and easier to get tax right.

Making Tax Digital will be effective from April 2019 for VAT registered business with a taxable turnover above £85,000 as a threshold. Business with sales over VAT threshold needs to file there VAT returns to HMRC using MTD compatible software. HMRC ensure a seamless transition to digital tax for taxpayers. By April 2020, HMRC has the vision to widen the scope of MTD by digitising income tax and corporation tax.

Under MTD one needs to keep VAT records digital, sign up for Making Tax Digital for VAT and use software compatible with MTD to submit VAT Returns. You must have correct software before you Sign up. We at SKATAX can help you do some or all the activities needed to make your tax digital. You need to submit your VAT returns to HMRC using software that extracts digital records and links them to HMRC to send and receive information.

Who has an exemption from MTD?

  • Those who cannot use digital tools due to religion, age, disability, remoteness or any other reason
  • Charities (although trading branches of charities will not be exempt)
  • Unincorporated businesses and landlords with annual sales below the £10,000 threshold

  • Do you have the right software?

  • Software must let you submit VAT Returns
  • Software must be compatible with Making Tax Digital for VAT

  • How do I Sign up for Making Tax Digital for VAT?

  • Within 72 hours you’ll receive an email confirmation
  • You can submit returns using software which is compatible with Making Tax Digital for VAT

  • Making Tax Digital (MTD) brings together taxpayers information in one digital online place. Businesses and individuals have access to the service from a digital device and at a time allowing taxpayers to register for new services, updating their information and view how much tax they need to pay.