FreeAgent, the innovative cloud accounting provider, has successfully completed its first batch of VAT return submissions under the UK’s new digital tax legislation.
The company, whose award-winning software is used by freelancers, small businesses and accountants, has become one of the first software providers to successfully submit returns through HMRC’s pilot for Making Tax Digital (MTD) for VAT.
The new legislation require VAT-registered businesses to keep digital tax records and make submissions using software to HMRC from April. It is the first stage of the government’s wider Making Tax Digital agenda, which aims to fully digitise tax reporting for all UK businesses over the coming years.
In the first batch of submissions, hundreds of FreeAgent’s small business customers have successfully filed VAT returns through the MTD pilot - with many more expected to file before the legislation officially comes into effect later this year.
Ed Molyneux, CEO and co-founder of FreeAgent, said: “We’ve been working hard in recent months with HMRC to ensure that we’re ready for the new digital tax legislation, so we’re delighted to have now successfully completed our first wave of MTD submissions.
“It means that FreeAgent customers are now fully covered when it comes to Making Tax Digital and will enjoy the best possible experience for submitting their VAT returns under this new process.”
Last year, FreeAgent was named on HMRC’s list of suppliers ready to support MTD for VAT. The company has also created a suite of useful resources for freelancers and small business owners who are looking for more information about Making Tax Digital and how the new legislation will affect them. You can read it here.