If you are a VAT registered business with a turnover of above £85,000, then from 1 April 2021 you will need to ensure your accounting and VAT records are kept digitally in line with Making Tax Digital (MTD) regulations.
MTD if using the Clever Accounts Portal
If you use the Clever Accounts bookkeeping portal, there is nothing you need to do at the moment and we will be in touch in due course to get you fully set up and using our Making Tax Digital service.
MTD if using a different online bookkeeping provider
If you use Xero, FreeAgent, Kashflow, etc and will be impacted by MTD, then we recommend you check with the relevant software provider to get their guidance on how to ensure your records and filing of VAT returns are MTD compliant.
You will also need to ensure that you are registered with HMRC to submit VAT returns via MTD as a new online access will be required. Guidance on how to set this up can be found in our MTD guide.
MTD if using spreadsheets
If you are using spreadsheets to maintain your bookkeeping, we would strongly recommend that you move onto our bookkeeping portal which is MTD compliant and this ensures we can assist you with registering for MTD VAT and submit the VAT returns on your behalf.
However, if you wish to continue to use spreadsheets, then you will need to install a “Bridging Software” onto Excel or transmit your VAT records directly through HMRC’s application programming interface (API). You will also need to ensure you are registered with HMRC for VAT MTD submissions, with details on how to do this in the link above.