HMRC recently published their final version of the legislation introducing the new MTD VAT reporting obligations, which are to take effect from 1 April 2019.

From this date, businesses with UK taxable turnover above the VAT registration threshold (currently ₤85,000 per annum) will need to keep and preserve digital records and submit UK VAT returns using compatible software.

What does this mean for you?

Taxpayers will be required to an “application programming interface” (API) which will enable electronic communication with HMRC. They will also have to use “functional compatible software”, i.e. a software program or set of compatible software programs, the functions of which include:

• recording and preserving electronic records in an electronic form;
• providing information to HMRC from the electronic records and returns in an electronic form and by using the API platform; and
• receiving information from HMRC.

HMRC will not be providing taxpayers with software, but says it is working with software suppliers to help them design functional compatible software.

For more information, get in touch with:

Tom Birch
tom.birch@pwc.com
+44 7703 563 631

Bilquelle: Tony Hegewald / pixelio.de