What is Making Tax Digital?

 

Making Tax Digital (MTD) is a key part of the government’s plans to make it easier for businesses to get their tax right first time and keep on top of their tax affairs.

To help make the UK’s tax system more efficient and effective, Making Tax Digital introduces digital record keeping requirements and requires the use of software that’s compatible with the Making Tax Digital platform.

This new digital experience is designed to help businesses minimise the number of avoidable errors they currently make, and make preparing and filing returns easier, and less stressful, for all parties involved.

Making Tax Digital for VAT is part of HMRC’s wider Making Tax Digital programme, and is the first tax under MTD to be rolled out.
MTD for VAT came into effect in two waves. Most businesses had to apply the rules for their first VAT period starting on or after 1 April 2019. A VAT period is the dates covered by your business’ VAT return. However, a smaller group of entities (those with more complex VAT affairs, such as trusts and businesses using the annual accounting scheme) were given a deferral date. Those businesses have only had to comply with MTD for VAT for VAT periods starting on or after 1 October 2019.
Businesses that are VAT registered with a taxable turnover over £85,000 must comply with the new Making Tax Digital for VAT regime, subject to very limited exceptions. If you had to file a VAT return before MTD for VAT, the chances are high you’ll have to comply with these new rules. Even if you’re not required to comply with the Making Tax Digital rules, there’s nothing to stop you from voluntarily following the regime.

Get the Right Making Tax Digital VAT Software

 

Around 98% of VAT returns are already submitted digitally, but under Making Tax Digital there are new requirements that businesses and their accountants / bookkeepers should be aware of.

One of the most important new requirements is that VAT returns should be filed with HMRC using software that is compatible with the Making Tax Digital platform.

AccountsPortal has been recognised by HMRC as being Making Tax Digital compatible, meaning filing MTD compliant VAT returns is a breeze.

Digital Record Keeping

 

Our software ensures your business complies with the digital record keeping requirement of MTD, meaning there’s no need to use other software to record your VAT figures.

Online Filing

 

Seamlessly file accurate VAT returns online to HMRC using the data held in AccountsPortal.

VAT Information At Your Fingertips

 

Keep on top of your VAT compliance. Use AccountsPortal to view submitted VAT returns, check what VAT you owe to HMRC, and view your payment history.

Use AccountsPortal for your Making Tax Digital needs

 

Whether you’re a bookkeeper, accountant, or small business owner, AccountsPortal’s Making Tax Digital offering can help you get the most out of your VAT compliance.

AccountsPortal’s software is integrated with the Making Tax Digital portal, meaning it’s easier than ever to paint a clear picture of your in-year tax position and to get your tax right first time. The improved process is more efficient and reliable - meaning you can spend less time worrying about tax, and more time worrying about your business.
As Making Tax Digital for VAT is still relatively new, there are plenty of businesses that are counting on their tax advisers to guide them through the new regime, and make sure they remain compliant with the new rules.

AccountsPortal knows how important it is to keep on top of a client’s tax compliance. Our software allows you to interact with HMRC digitally and at a time that suits you.

It’s easy to get an increasingly personalised picture of your clients' tax affairs, with prompts, advice and support available through webchat and secure messaging.

By using digital software like AccountsPortal, information can be sent and received directly, with nudges and prompts built-in that help your clients get their tax right first time.

HMRC Making Tax Digital Software

 

Transitioning to Making Tax Digital for VAT doesn’t need to be a chore. Once you’re up and running, there are plenty of benefits to digital record keeping and online filing.

Efficiency

 

HMRC is helping accountants and small business owners save precious time by speeding up the VAT submission process and automating it as much as possible.

Better Use of Information

 

You should not have to give HMRC information that it already has or can obtain elsewhere. You will be able to use AccountsPortal to check the information that HMRC holds about your business at any time to ensure that it is complete and correct.

Reliability

 

This streamlined digital experience will integrate tax into day-to-day business record keeping, giving businesses confidence that they have got their VAT right, while having an accurate view of their tax position in-year.