UK Making Tax Digital VAT changes coming
Tue 14th Aug 2018
On 1 April 2019, over 2 million UK and foreign businesses with a UK VAT registration must go digital on recording and filing their VAT records.
The big changes include:
Digital record keeping
All VAT transactions, sales and purchases may no longer be held manually or on spreadsheets. Instead, ‘functional compatible software’ which link to HRMC’s Application Programming Interface (API) platform must be used.
Filing VAT returns
Manual keying in of data on HMRC’s portal will no longer be permitted. Instead, software must file electronically directly to the new platform.
A number of business types are exempted from the new requirements including: businesses below £85,000 VAT registration threshold; companies in insolvency; tax payers using the margin, flat rate and annual VAT return schemes.
Click for free British VAT info