VAT Return / MTD

Making Tax Digital brings fundamental changes to how the tax system works – transforming tax administration to be more effective, more efficient, and easier for taxpayers to get their tax right.
HMRC Roadmap and Timelines

By July 2020, 1.4 million businesses signed up to MTD, and over 6 million VAT returns have been successfully submitted.

From March 2021, HMRC intend to migrate all of the VAT customers onto their Enterprise Tax Management Platform (ETMP)

From 8th April 2021, XML VAT Submission is no longer accepted.

Any VAT businesses with taxable turnover above £85,000 who have not yet signed up for MTD must do so as soon as possible, or they may be charged a penalty.

MTD for VAT is extended to include businesses with taxable turnover below £85,000 from April 2022.

From April 2023, all incorporated (self-employed) businesses and landlords with total business or property income above £10,000 must sign up to MTD. That would be approximately 3.4 million businesses.

Why MTD?

Quarterly updates ensure that businesses are keeping digital records, promoting voluntary compliance, and enabling better control over tax liabilities.

Other key benefits:

  1. Automatic VAT calculations on bills and invoices.
  2. VAT is handled and automatically posted to the relevant boxes on the VAT return form.
  3. Save time & stay compliant.

From March 2021 HMRC introduced VAT Reverse charge for the building & construction industry.

What do we do?

• We help you with registering your business for VAT when your income reaches the threshold.

• As HMRC Agent, we will represent you in all VAT queries and would be able to speak with HMRC on your behalf on a dedicated Agent line.
Thus, you won’t be wasting your precious time queueing for the first available officer.

• We promote HMRC approved software for MTD – Quickbooks Online – and offer a discounted lifetime subscription to our clients.

• We assist you with bookkeeping to get all records prepared for VAT submissions.

Alternatively, if you decide to maintain records yourself, we audit those records quarterly to check for data consistency and remove any errors if applicable.

• We advise you on the final figure for VAT return and finalise the quarterly submission.

• We send you the reminders, so no deadline is missing.