Making Tax Digital

HM Revenue and Customs has called on businesses with an annual turnover above £85,000 to sign up to Making Tax Digital (MTD) before the 7 August VAT filing date.

MTD, which came into force on 1 April, is applicable for around 1.2 million VAT-registered businesses with taxable turnover over £85,000.

Many of the businesses affected by the MTD rules will be required to submit their first quarterly VAT return to HMRC using software by the 7 August. If paying by Direct Debit, these businesses must register by Monday 29 July, HMRC noted.

The tax authority said around 10,000 businesses are registering for MTD every day and over 600,000 businesses have signed up in total. Some 400,000 submissions already successfully made using software, it added.

“Now is the time for businesses with an August quarterly filing deadline to sign up and join the hundreds of thousands already experiencing the benefits of MTD,” said Theresa Middleton, director of MTD at HMRC.

Middleton informed that the authority won’t be issuing penalties to “businesses doing their best to comply” during the first year.

The MTD rules require businesses to keep their VAT records digitally and to submit their VAT return direct from their MTD-compatible software.