Making Tax Digital Services (MTD)

Making Tax Digital Services (MTD)

Since April 2019, companies that were registered for VAT and have a taxable turnover above the VAT threshold will be required to submit their VAT Returns online. These returns must be filed through commercial software, and businesses must also keep digital records for VAT. A point-based penalty system has been implemented for any non-compliance.

Business owners, self-employed, and those who pay Income Tax, National Insurance, VAT, or Corporation Tax should be aware that they may be affected by the Making Tax Digital (MTD) regulations. This means that they will need to keep track of their tax affairs digitally using MTD-compatible software and update HMRC at least quarterly via their digital tax account.

How can we help?

Sterling Books can help you make the transition to digital tax and ensure that you are compliant with MTD for VAT changes from April 2022. We can assist you as your bookkeeper on the software you will require and how to adhere to the new reporting obligations.