All UK businesses with VATable sales above the VAT threshold (currently £85,000) need to store digital records and submit VAT updates to HMRC using MTD-compatible accounting software. Even if you’re already using accounting software to file VAT digitally, you still need to change the way you submit your return to HMRC.
What do you need to do?
If you haven’t started preparing your business for digital VAT filing yet, you need to:
Sign up to FreeAgent
Register for Making Tax Digital for VAT on HMRC’s website
Get your business’s accounts ready to file
Connect your FreeAgent account to HMRC’s Making Tax Digital service
File your business’s first MTD VAT return
Registering for HMRC’s new Making Tax Digital service can take up to seven working days to complete so we recommend that you get going as soon as you can.
How to get your business set up for Making Tax Digital for VAT
Discover how easy it really is to file digital VAT from FreeAgent in this short video.
When's it happening?
Check the timeline to find out when Making Tax Digital will affect you.
MTD for VAT becomes mandatory for businesses over the VAT threshold (£85K).
June - October 2019
Mandated businesses due to file their first MTD VAT returns to HMRC.
HMRC looks to widen the scope of MTD to include Income Tax and Corporation Tax.
How FreeAgent can help
FreeAgent’s powerful automation features can help you get your accounts in order for digital VAT filing with minimal hassle. Our brand new Open Banking bank feeds automatically backfill your account with historical bank transactions, saving you time as you prepare to file your first digital VAT return.
Once you’ve set up for digital VAT filing and your accounts are in order, FreeAgent will automatically generate your MTD VAT return and allow you to submit it directly to HMRC with the click of a button.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services. Registered in sunny Scotland No. SC316774 - One Edinburgh Quay, 133 Fountainbridge, Edinburgh, Scotland, UK EH3 9QG