When to Submit your First Making Tax Digital VAT Return

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When to Submit your First Making Tax Digital VAT Return

Making Tax Digital affects all VAT registered businesses from 1 April 2019.  However when you need to file your first VAT Return under the rules of Making Tax Digital depends on your VAT quarter dates.

When to Submit your First Making Tax Digital VAT Return

Here’s the official HMRC dates you’ll need to use to work out when you need to start:

  • Quarters ending January: first MTD Return is due 07/19
  • Quarters ending February: first MTD Return is due 08/19
  • Quarters ending March: first MTD Return is due 06/19
  • For monthly VAT Returns: first MTD Return is 04/19

What You Need to Do to Submit Your First Making Tax Digital VAT Return

Under the rules of Making Tax Digital all VAT records and workings need to be maintained digitally using an HMRC approved software.

Digital Record Keeping means you need to enter every business transaction onto a bookkeeping software rather than just adding them together manually to work out totals for a VAT Return.  The bookkeeping software then works out your VAT figures and submits them straight to HMRC.

That means the Government Gateway method of submitting VAT returns electronically will be scrapped.

For each transaction the following needs to be recorded:

  • Tax Point
  • Value of Supply
  • Rate of VAT charged

Making Tax Digital and Business Record Keeping

There are no changes to the rules surrounding business record keeping . That part remains unaffected.

You must keep all documentation to support all sales and purchases in your business.

Dos and Don’ts of HMRC Making Tax Digital

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