Making tax digital (MTD) is an HMRC initiative to move taxpayers to a fully digital tax system. MTD for VAT will be implemented from April 2019 with income tax following in ‘2020 at the earliest’.
MTD for VAT will mean a fundamental change in the way barristers meet their VAT compliance requirement.
The key practical issue is that VAT returns will no longer be submitted to HMRC by completing the VAT return online. Instead, VAT data will be sent to HMRC using ‘functional compatible software’. Functional compatible software must be capable of keeping and preserving records in digital form, creating a VAT return from the digital records and submitting this data to HMRC digitally.
Click here for MTD advice for Barristers
Click here for MTD advice for chambers