For businesses that submit monthly VAT returns, the first deadline for filing returns under Making Tax Digital (MTD) is 07 June 2019.
However, for the majority of business which file VAT returns on a quarterly basis, the first deadline is 07 August 2019.
The dates mark the first time HM Revenue & Customs’ (HMRC’s) new digital tax system will be used by thousands of businesses across the UK.
Under the new regime launched last month, almost all VAT-registered businesses earning above the VAT threshold (currently £85,000) will need to keep their records digitally and submit their VAT returns using MTD-compatible software.
This means using software such as Xero, Sage, Quickbooks, or many others, which can be accessed by finance teams, business owners and accountants in any location and at any time.
To get you ready to file your first return – which may mean as early as next week for some businesses – we’ve outlined some quick tips below:
- Sign up to Making Tax Digital no later than 72 hours before your filing deadline. You will need your Government Gateway ID and password to use digital services, as well as your VAT registration number.
- There are hundreds of different types of software available, but there may be only one that suits your business. Identify your needs and then shop around based on price, reputation and customer service.
- Take full advantage of the free resources offered by HMRC and others online. For a step by step guide to MTD for VAT and to find software that’s compatible, for example, click here.
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