VAT registered businesses with a taxable turnover above the VAT threshold (£85,000) will be mandated to keep digital VAT records and send returns using Making Tax Digital (MTD) compatible software from April 2019.

Following last year’s ministerial announcementMTD will not be mandated for other taxes until at least April 2020, but businesses can get involved in the Income Tax pilot now on a voluntary basis.

This communication pack supports our partnership working arrangements with stakeholders who can use the contents to inform their own communications activity and key messages for their clients, customers or members.

MTD for VAT– this is currently a private pilot available to invited volunteer VAT businesses and their agents. This is so we can work with software providers, testing our systems and their products on a small scale before opening it out to a wider audience. For now, we are limiting the number and types of business we invite into the pilot. We explain this in more detail in the pack.

MTD for Income Tax – this pilot is already available for the self-employed with income from one source of self-employment and landlords (except those with furnished holiday lettings). Stakeholders will be able to use the material in this pack for any communications activity promoting the MTD for Income Tax pilot. You can read more about getting involved in the Income Tax pilot below.

This communication pack provides information for stakeholders, who can use the contents to inform their own communications activity and key messages for their clients, customers or members.

Find out if the rules for Making Tax Digital for VAT apply to you and about the digital information you must keep HERE