Under Making Tax Digital (MTD), businesses must keep digital records and use third-party software to submit tax returns to HMRC. Business with taxable income over the VAT registration threshold, currently £85,000, should reporting their returns under this method.
From March 2022 all VAT registered business must report their returns digitally. This will require many businesses to purchase accounting software or bridging software. The software must be capable of receiving information from HMRC digitally via HMRC's Application Programming Interface (API) platform. HMRC have published a list of approved software suppliers.
We do offer a bridging software solution, please get in touch if you would like more information.
VAT can be a complex area. Everyone's situation is different and getting advice that is tailored to your unique situation can ensure that your affairs are as efficient as possible. We offer a free initial consultation, so if you would like to speak to Natasha Heron, please get in touch with her on +44(0)330 024 3200 or email hi@hhllp.co.uk.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.