United Kingdom

MTD – what’s changing?

August 13th, 2018

Manual accounting records Required VAT records VAT filings Adjustments to VAT returns Error corrections Supporting VAT data Businesses below £85,000 VAT threshold Annual VAT return filers VAT Flat Rate Scheme Retail Scheme Margin schemes Non-resident UK VAT payers rules


United Kingdom

MTD – functional compatible software

August 13th, 2018

Under the new UK Making Tax Digital (MTF) VAT rules, ‘Functional Compatible Software’ is a single program or set of programs, products or software applications that are able to: Record and store VAT digital records; Submit to HMRC data for the completion of VAT returns via HMRC’s API platform; and Receive data and information in …


United Kingdom

MTD – Exempt businesses

August 13th, 2018

From 1 April 2019, under the Making Tax Digital (MTD) initiative, all UK VAT registered businesses will be required to store and file their VAT transactional data digitally. However, several exemptions have been granted. These include: Businesses which have never crossed the VAT registration threshold, currently £85,000 per annum Businesses under insolvency procedures Members of …


United Kingdom

MTD Digital record-keeping

August 13th, 2018

UK VAT registered businesses under the new Making Tax Digital (MTD) rules must keep and maintain relevant VAT records digitally within ‘functional compatible software’. This includes sales and purchase invoices with VAT. Accounting records not specific to VAT return requirements are not included in this. The following date must be stored digitally: Designatory data: business trading name; …


United Kingdom

HMRC issues Making Tax Digital guidance

July 31st, 2018

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 …


United Kingdom

UK HRMC wins chocolate 20% VAT ruling

July 21st, 2018

On 21 July, HMRC won an appeal ruling at the First-Tier Tribunal Court against Kinnerton Confectionery, manufacturer of allergen-free chocolate for children. HMRC’s assessment was upheld that Kinnerton should be charging full VAT on its nut-free Just Luxury Dark Chocolate bar. HMRC had assessed a liability of £258,470 on Kinnerton for incorrectly zero-rating the bar. Kinnerton, based …


United Kingdom

UK votes to not rejoin EU VAT regime post Brexit

July 17th, 2018

On 16 July, the UK Parliament voted to amend the Brexit Customs Paper to ensure the UK does not remain within the EU VAT regime post Brexit. Aside from meaning the UK will exit the VAT regime, the amendment could raise questions over a hard Northern Ireland border. The amendment, won by 3 votes (303 vs 300), …