Making Tax Digital - VAT

Welcome to our Making Tax Digital page, where you’ll find the latest information, analysis and practical guidance on what Making Tax Digital will mean for you.

Making Tax Digital is the Government’s plan to modernise and digitalise the UK tax system. Ultimately, this will have significant implications for both businesses and individuals.

From 1st April 2022 all VAT registered businesses must sign up, whatever they earn.

What is Making Tax Digital?

MTD for VAT requires businesses to:

a) keep records in a digital format and

b) submit VAT returns using commercial software (not via the existing government gateway account as many returns are filed at present). The detailed requirements have been published by HMRC in VAT Notice 700/22:

Unless the business meets one of the exemption requirements as outlined below

Exemptions from MTD

Some business may be able to claim exemption from MTD if any of the following apply:

On religious grounds, if the business is run entirely by practising members of a religious society for whom compliance with MTD is incompatible with their beliefs.
If it is not reasonably practicable for the business to use digital tools to keep records for reasons of age, disability, remoteness of location or for any other reason.
The business is subject to an insolvency procedure.

If businesses believe that they fall into one of these categories they will need to contact the HMRC VAT Helpline to discuss alternative processes for submitting VAT information. Exemption applications are now open at HMRC.

How can Ward Williams help you?

We have become increasingly aware that some software providers are charging significant additional fees for the provision of API enabled software.

There is no need for you to worry about upgrading/changing your existing software to API enabled software. Whatever format your VAT records are maintained in, Ward Williams have already helped hundred of clients become compliant and submit their MTD VAT returns.

Ward Williams works with the below HMRC approved software providers for MTD for VAT.

Please contact us to discuss your individual needs and specific advice on how we will be able to help you on enquiries@wardwilliams.co.uk or call 01932 830664.