Making Tax Digital for VAT within Interprise
Making Tax Digital (MTD) is a UK government initiative that changes the way tax is reported to the HMRC. Interprise fully supports the arrival of the Making Tax Digital for VAT requirements scheduled to be mandatory from 1st April 2019.
Making Tax Digital is a big change to the tax regime; it will ultimately require you to feed detailed data from your accounting software directly to the HMRC digital portal in ever smaller period chunks, but initially begins with the supply of your VAT Return figures in electronic format only.
There are two parts of Making Tax Digital, the VAT requirement and the Income tax requirement. The VAT part of this scheme is the most urgent and will soon become mandatory.
It mandates you to submit your VAT return information digitally to the HMRC electronic portal. The current HMRC portal for manual entry of VAT will be shut down at a given date (originally 1 April 2019) removing your ability to enter the information manually unless you are exempt from MTD.
This is only the start of the MTD drive. You should expect the requirement to upload your VAT transaction details (that make up your return figures) and so your accounting system should be capable of providing this when it happens.