What is Making Tax Digital?
Making Tax Digital (MTD) is the government’s initiative to implement a fully digital tax system in the UK where taxpayers keep digital records and use MTD-compatible software to make tax submissions electronically. To comply with Making Tax Digital legislation, you need to use MTD-compatible software to keep digital records and make submissions to HMRC electronically.
WHAT'S HAPPENING AND WHEN?
From this month MTD for VAT requires all VAT-registered businesses to keep digital records and use MTD-compatible software to submit VAT returns electronically. Eventually MTD legislation should cover all HMRC taxes. See planned implementation timeline below.
What you need to do?
You will need to register for MTD on the HMRC website.
How to register
Before you sign up to Making Tax Digital for VAT you’ll need either a compatible software package that allows you to keep digital records and submit VAT Returns or bridging software to connect non-compatible software (like spreadsheets) to HMRC systems.
After you’ve got the right software, you’ll need to register on the HMRC website.