HMRC issues Making Tax Digital guidance
On 13 July 2018, HMRC published Notice 700/22, updating its requirements for Making Tax Digital (MTD) for VAT. This explains the rules on:
- Record keeping;
- Special recording circumstances;
- The use of obligatory ‘functional compatible software; and
- The linkage of software packages where a combination of programs are used.
Who must comply – turnover test
From 1 April 2019, VAT registered businesses over the UK VAT registration threshold, currently £85,000, are obliged to follow the new digital rules. So voluntary registered businesses do not. However, only businesses with taxable turnover that has never exceeded the VAT registration threshold will be exempted from MTD.
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