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Frequently Asked Question (FAQ’s)
From April 2019, your VAT returns must be submitted electronically to HMRC via approved software. Your VAT records needs to be maintained digitally and the VAT data needs to be submitted in an MTD-compliant format. You can do this using MTDfVAT (MTD Functional Compatible Software).
Making Tax Digital for VAT will come into effect from April 2019. From that date, businesses with a turnover above the VAT threshold (currently £85,000) will have to:
- Keep their records digitally (for VAT purposes only)
- Provide their VAT return information to HMRC Revenue and Customs (HMRC) through Making Tax Digital (MTD) functional compatible software.
From April 2019, Making Tax Digital is mandated for all businesses with a turnover above the VAT threshold (currently £85,000) (except those that have been deferred).
From October 2019, Making Tax Digital is mandated for customers that have been deferred. The 6-month deferral applies to customers who fall into one of the following categories: trusts, ‘not for profit’ organisations that are not set up as a company, VAT divisions, VAT groups, those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users. The deferral will apply to around 3.5% of mandated customers.
You have until April 2019 to get ready for Making Tax Digital (MTD) for VAT.
Decide which version of MTDfVAT you need, then place your order from our purchasing page.
We have two versions of MTDfVAT: ‘Individual‘, for Sole Traders, and ‘Company’ for Limited companies or Limited Liability Partnerships.
Simply choose your applicable version on our purchasing page. After purchase you will be sent all the details you need to get started, including your VAT receipt, full instructions, and your secure login details to our online submissions’ hub.
Please refer to our helpful guides in the Documentation section.
Please refer to our helpful guides in the Documentation section.
If you have looked through the FAQ’s and still can’t find an answer to your question, please contact us using the contact form. We will contact you by email as soon as one of our staff is free to handle your request.
Yes, it is. MTDfVAT is hosted on our secure cloud servers, uses HTTPS encryption and enforced strong password logins. The service is available 24/7/365.
Yes, it is. Businesses must use an MTD functional compatible software to file their MTD for VAT returns from April 2019 onwards, except those that have been deferred.
It is £50 + VAT for Single Companies, Individuals (Sole Traders and the Self-Employed).
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More help on how to test your system to appear here soon. Please check back.
No, there needs to be a digital audit trail (For example Excel) for how you came to those 9 VAT totals. Please see this link from the HMRC for more information – https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat#digital-record-keeping
Yes, as of October 2019, the latest software version can automatically consolidate multiple data sources for different companies within a larger group enterprise.
Yes, as of October 2019, the latest software version can automatically consolidate multiple data sources. For example, for different companies within a larger group enterprise, or for multiple spreadsheets concerning a single company (such as for online operations verses over-the-counter sales operations).
Read through our guides on how to set up and use MTDfVAT
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