Making Tax Digital (MTD) is a key part of the UK government's plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. Under MTD rules, businesses must keep digital records and submit their VAT returns using compatible software.
Does MTD affect your business?
Since April 2022, all VAT-registered businesses in the UK, regardless of their taxable turnover, must comply with Making Tax Digital rules. This means you can no longer submit returns manually through the standard HMRC portal. You must use bridging software or compatible accounting suites like Xero, QuickBooks, or FreeAgent.
What are the digital record-keeping requirements?
Under MTD, you must digitally record specific data points, including:
- Your company name, address, and VAT registration number.
- The time and value of supplies made (sales invoices).
- The time and value of supplies received (expense receipts).
- VAT rates charged on sales and claimed on expenses.
How Sayman Limited can help
At Sayman Limited, we configure MTD-compliant cloud accounting systems, audit your transaction records, and submit your quarterly VAT returns directly to HMRC, eliminating manual entry errors and penalty risks.