Most VAT registered businesses with a taxable turnover above the VAT threshold (£85,000) are now required to keep digital VAT records and send HMRC their VAT returns using Making Tax Digital-compatible software.
This applies to VAT return periods which started on or after 1 April 2019. To aid the transition, HMRC have created some videos to show how people are currently using the software.
Below Richard Balson who runs England’s oldest family business, R J Balson, talks about the benefits of using the new service.
Agents are able to file VAT returns on their clients behalf if they wish. Billie McLoughlin, an accountant from Harris, Lacey & Swain in Hull, talks about how she has been preparing her clients for the new VAT service.
Some useful MTD resources for AAT members:
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