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.
Making Tax Digital for VAT in 60 seconds
Get to grips with MTD for VAT in this short video from FreeAgent’s chief accountant, Emily Coltman.
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 must file VAT returns to HMRC using MTD-compatible accounting software.
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.
Something I could not imagine running my business without now is @freeagent. Oh my, what a godsend! It's made invoicing and everything else finance related so easy. #smallbizresources #MinalsTips 5:15 AM - 7 Jun 2018
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