Making Tax Digital VAT software
Get ready for Making Tax Digital for VAT
From April 2022, all VAT-registered businesses in the UK will need to use Making Tax Digital software to keep digital records and make VAT submissions to HMRC. Now is the time to get ahead with QuickBooks, the HMRC-recognised Making Tax Digital software for small businesses.
Call the MTD Hotline today: 0808 168 4238
VAT payments due between 20 March — 30 June 2020 are now deferred by HMRC. Find out more about the support available to you during COVID-19.
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Making Tax Digital for VAT explained
Making Tax Digital - MTD for short - is part of HMRC’s mission to become one of the most digitally advanced tax systems in the world. It requires businesses in the UK to keep digital records with the help of ‘functional compatible software’ that can connect directly to HMRC.
The transformation from spreadsheets or paper records to a new system may sound intimidating, but is in fact very simple with Making Tax Digital software from QuickBooks.
Rolling out MTD
Initially, Making Tax Digital rules have only applied to businesses with a VAT taxable turnover above the £85,000 threshold. But this is just the start. The government plans to roll out this digital transformation across the entire tax system. These are the deadlines so far:
April 2021: The option to submit returns via XML is being removed from the HMRC website
April 2022: Making Tax Digital for VAT applies to all VAT-registered businesses
April 2023: Making Tax Digital for Income Tax applies to self-employed businesses and landlords with annual business or property income above £10,000
April 2026: Making Tax Digital for Corporation Tax may come into effect for incorporated businesses and other organisations within the charge to Corporation Tax
Why get Making Tax Digital software now?
If you’re running a VAT-registered business with an annual taxable turnover above £85,000, it’s likely that you’re already required to use Making Tax Digital software for your VAT returns.
If your business has an annual taxable turnover below £85,000 and you're still submitting your VAT return in the old way, it makes sense to start using MTD-compatible software now to avoid problems later. From April 2021 HMRC are closing the option to submit returns via XML and by 2022 you'll need to be using digital links to exchange information with HMRC.
What are digital links?
Digital links are a way to describe the direct data exchange between Making Tax Digital software and HMRC. If your business is VAT-registered, you must use HMRC-approved software like QuickBooks to keep digital records, which you can then send to HMRC with the click of a mouse before the VAT deadline.
Made a mistake in your tax return? Simply modify your data in QuickBooks’ software before sending your updated VAT return.
What are the benefits of Making Tax Digital?
Investing in Making Tax Digital software now makes it easier to:
- keep accurate records
- meet your VAT deadline
- comply with HMRC
Start tracking your digital records today to submit your next VAT return in minutes.
QuickBooks: Making Tax Digital software recognised by HMRC
By using QuickBooks, your business is all set up to comply with the latest government regulations. And at the same time, managing your business finances will become a whole lot easier.
Automate your VAT
Forget the headache of calculating VAT percentages - with QuickBooks’ HMRC-recognised software, the VAT you owe is worked out automatically.
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Avoid costly mistakes
QuickBooks’ VAT Error Corrections Checker scans your VAT for common mistakes, saving you time and stress.
See how it works
Save hours on bookkeeping each month
Swap manual data entry for bank connections that import your transactions in real-time. Snap and store receipts, auto-track your mileage and categorise transactions digitally so you're ready for tax time.
Submit your VAT return in minutes
Transform the process of submitting your VAT return. When all your info is already in QuickBooks it's just a matter of using the VAT error checker to scan for common mistakes, then submitting directly to HMRC.
"A great way of summarising everything that goes into the return without having to review everything for the quarter."- Tom Ridgway, Wyvern 3D Ltd
What small businesses say about QuickBooks
"QuickBooks is easy to import into, export out of and directly integrate with certain platforms. The software was built with the user experience in mind."- William A.
"I loved the flexibility of the software when it comes to integration with software from other vendors. The pricing is awesome especially for small and upcoming businesses."- Nelson Kipchirchir s.
"The online version of QB makes it easy to always have the necessary updates and current edition. Anytime, anywhere access is a plus."- Charleen F.
Frequently asked questions
Who needs to use Making Tax Digital software?From April 2022, all VAT-registered businesses in the UK will need to use Making Tax Digital software that can connect directly with HMRC. QuickBooks is recognised by HMRC as MTD-compatible.
Has Making Tax Digital been delayed?The original deadline for VAT-registered businesses with a taxable turnover below £85,000 to become MTD-compliant was April 2020. Due to the pandemic, this deadline was extended to April 2022.
When is the deadline for Making Tax Digital for VAT?For VAT-registered businesses with a taxable turnover above £85,000, the MTD deadline was April 2019. VAT-registered businesses with a taxable turnover below £85,000 will need to follow MTD rules for their VAT return from April 2022 onwards.
What do I need to do for Making Tax Digital?To comply with Making Tax Digital rules for VAT, you'll need to:
- Keep your VAT records digitally with Making Tax Digital software that connects directly to HMRC
- Submit your VAT return to HMRC through Making tax Digital software
I already submit my VAT returns online - am I not already compliant?Just because you are submitting your VAT returns online doesn’t mean that you're MTD compliant. You need to submit your VAT returns to HMRC through Making Tax Digital software in order to meet the requirements.
Can I submit my VAT returns through XML?From April 2021, the option to submit VAT returns via XML is being removed from HMRC’s website. Until you’ve moved over to Making Tax Digital software, you’ll need to log into your Business Tax Account with HMRC to manually enter your tax return numbers.
How do I set up Making Tax Digital for VAT?If you’re a business owner, you need to register for Making Tax Digital for VAT on the government website. To register, you need the following:
- A business email address
- A Government Gateway user ID and password
- Your VAT registration number and latest VAT return
How do I submit my VAT return digitally?QuickBooks’ Making Tax Digital software will track your digital records throughout the year and remind you when your VAT return is due. As all relevant records will already be stored in one place, you just need to check your data before submitting your VAT return to HMRC directly through the QuickBooks accounting software.
Where do I get Making Tax Digital software?You can find a list of MTD-compatible software on GOV.UK. As HMRC don’t offer their own software, they are collaborating with Making Tax Digital software providers such as QuickBooks to facilitate the transition.
Is QuickBooks Making Tax Digital compliant?Yes, QuickBooks’ accounting software is MTD-compliant. If you’re using QuickBooks Desktop, you need to switch to QuickBooks Online or make sure you’ve upgraded your software to the latest version.
Can my accountant help me with the transition?Accountants can help you transition to Making Tax Digital for VAT as long as they have:
- Permission to act as an agent on your behalf
- Registered for an Agent Services Account and linked your HMRC account to it
- Access to Making Tax Digital-compliant software