Making Tax Digital is the government’s plan to make it easier to submit taxes. HMRC is aiming to be one of the most digitally advanced tax administrations in the world.
MTD UK – MAKING TAX DIGITAL
Making Tax Digital is the government’s plan to make it easier to submit their tax. HMRC is aiming to be one of the most digitally advanced tax administrations in the world. Making Tax Digital is one of the ways to achieve this purpose. With the UK MTD, it will be more effective, more efficient, and easier for taxpayers to get their tax right.
VAT-registered businesses with a taxable turnover above the VAT threshold are now required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns for VAT periods that started on or after 1 April 2019.
The exception to this is a small minority of VAT-registered businesses with more complex requirements. As part of planning for the VAT pilot, HMRC continued to engage with stakeholders and listen to their concerns about business readiness for Making Tax Digital. We have decided to delay mandatory for these customers until 1 October 2019 to ensure there is sufficient time to test the service with them in the pilot before they are mandated to join.
HMRC has published a VAT Notice which explains the rules for Making Tax Digital for VAT and the digital information that must be kept.
You can access the VAT notice from HMRC’s Page for UK MTD VAT Notice.
S4FN has prepared an add-on for your MTD UK needs. You can check it out on the UK MTD product page.
Do you have any questions about MTD UK in SAP? Please contact us for more details and/or a demo session.