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Now Making tax digital is compulsory for all VAT registered businesses!

Making tax digital

MBM

10/20/20201 min read

Since April 2019, VAT-registered businesses with a turnover above the VAT threshold (currently £85,000) keep VAT records digitally and send returns using Making Tax Digital (MTD) compatible software.From April‌‌‌ 2022, these requirements will apply to all VAT-registered businesses, including those with a taxable turnover below the VAT threshold.which means all VAT registered businesses must :

  • Keep VAT records electronically

  • keep VAT records for at least 6 years

  • keep an electronic record of sales and purchases

  • keep a separate summary of VAT called a VAT account

  • issue correct VAT invoices

  • issue and keep electronic invoices

  • keep copies of all the sales invoices you issue even if you cancel them or produce one by mistake

  • keep all purchase invoices for items you buy



You can hire an accountant if you need help with your VAT. At MBM-Accountex we can help your business with VAT&MTD and if you choose us we will give you free access to HMRC compatible MTD software.