Making Tax Digital · 1 min read

TOP 5 MTD FOR VAT MYTHS

Busting the biggest misunderstandings about Making Tax Digital (MTD) for VAT, so you know what really applies to your business and what you can safely ignore.

Mark O'Grady 3 Nov 2018 · 177 words · MTD · VAT · HMRC
Illustration debunking five common Making Tax Digital for VAT myths for UK businesses and accountants.

There is a lot of confusion about MTD. Here are 5 of the most common myths.



1. You have to use cloud software ... false

You can use a many different types of software to store your transactions including Excel and older versions of accounting software. It does not have to be a cloud solution

2. The current HMRC portal is closing ... false

The current portal is not closing in April 2019. Only companies above the VAT Threshold of £85,000 need to use MTD solutions. 3. All 2 million companies need to use MTD ... false

Only 1.1 million companies turnover is over the VAT Threshold of £90,000. All other companies who have voluntary signed up can use the existing portal.

4. MTD is being postponed ... false

3.5% of organisation who have a turnover of over £85,000 will be delayed until October 2019

5. HMRC require all your digital records ... false

At the moment HMRC are requiring the same 9 boxes as before and at this moment in time do not require the transactions.

The short version

TOP 5 MTD FOR VAT MYTHS — in brief

The short version: there's a lot of noise about Making Tax Digital (MTD) for VAT, and much of it isn't true. You don't have to move to cloud software, the old HMRC portal isn't closing for everyone, and only businesses over the £85,000 VAT threshold need to use MTD. Here we clear up the five myths we hear most often, so you know exactly where you stand.