You need to consider if it is beneficial to be VAT registered from the outset. The pros and cons are discussed in Chapter 4. If you are registering for VAT, form VAT 1 needs completing, and if you are a partnership, form VAT 2 needs to be completed giving details of all the partners.

Information about VAT 1 and VAT 2 (and other VAT forms) can be found at:

https://www.gov.uk/government/collections/vat-forms

To register online go to https://online.hmrc.gov.uk/registration/

A new system of digital VAT record keeping, and reporting called Making Tax Digital (MTD) started from 1 April 2019 where taxable supplies exceed the £85,000 VAT registration threshold.

There are many ways we can help you:

  • We can assist you in registering for VAT online
  • We can act as your agent and file VAT returns online with you providing us with the figures to be entered
  • We can help you implement online filing through software
  • We can provide you with accounting software with integrated online filing so you can easily calculate and file the figures

More information can be found at the HMRC website: https://www.gov.uk/vat-returns

Please contact us at service@twpinsight.co.uk if you need any help.

When do I need to submit digital accounts information to HMRC for my business?

The Government now requires all VAT registered businesses making taxable supplies over £85,000 to keep their records in a digital format and submit their VAT information to HMRC quarterly as part of the “Making Tax Digital” project.

This means that such businesses will need to keep their accounting records in a digital format that links to the HMRC computer system.  Many of the detailed rules are now set out in regulations in secondary legislation. VAT guide 700/22 sets out the rules in detail.

We can help you choose a suitable computerised accounting system for your business that satisfies the digital accounting rules. For most VAT registered businesses above the threshold the new MTD obligation applied to the first VAT return period commencing on or after 1 April 2019.

MTD for VAT is not be mandatory for those businesses below the VAT registration threshold (currently £85,000).

Under the MTD for VAT legislation there should be digital links between different accounting software packages, however there was a “soft landing” period of one year to get such links in place. This meant that certain data could continue to be transferred by cutting and pasting between software packages. It has recently been announced that the “soft landing” would be extended for a further year, in other words the VAT return period that commences after 1 April 2021.