Making Tax Digital for business in the UK
Making Tax Digital is the UK law on electronic VAT statements which takes effect from 1 April 2019
Which businesses are affected by Making Tax Digital?
This is the official MTD timetable. However, companies withs a taxable turnover below the VAT threshold can still sign up for MTD voluntarily.
Start date: 1 April 2019
All VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) are required to keep digital records and send VAT returns digitally to HMRC using MTD-compatible software (except those that have been deferred).
Digital records should include, for each supply, the time of supply (tax point), the value of the supply (net excluding VAT) and the rate of VAT charged. They should also include information about your business, including business name and principle business address, as well as your VAT registration number and details of any VAT accounting schemes you use.
Start date: 1 October 2019
For a small minority of VAT-registered businesses with more complex requirements, HMRC established an extension period of 6 months to ensure sufficient time for testing during the pilot.
The deferral applies to a minority of businesses that fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company, VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (such as government departments and NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payment on account and annual accounting scheme users.
What information must be electronically archived?
Businesses must electronically archive the following information for six years:
Address of business
VAT number of business
Accounting schemes used
For product purchase and sale, the information to file will be:
Date of supply
Adjustments or corrections made to VAT
Daily gross takings
Do you need to send VAT reports to different countries?
Hungary: Real Time Invoice Reporting since 1 July 2018
Spain: Immediate submission of VAT books since 1 July 2017
Poland: VAT returns using the JPK_VAT file
Portugal: e-Invoicing and e-Accounting