Many businesses are still trying to understand what Making Tax Digital (MTD) will mean for them. This article explains in more detail the records that you must keep to become compliant with MTD. The main driver for MTD is to reduce mistakes when information is submitted to the HMRC. By using digital means for transmitting data the errors should be reduced significantly.

Here are some of the key records you must keep, you may already be doing this. If not, then speak to your accountant or contact us for advice.

Principle Data

• Business name and registered address
• VAT Registration number
• Record of VAT accounting schemes used

Supply that you make

• Time of supply
• Value of supply
• Rate of VAT Charged

Supply that you receive

• Time of supply
• Value of supply
• Input tax you will claim

In addition, there is a summary of data that you need to be recording, such as:

• Output tax - due on sales and acquisitions from other EU member states
• Input Tax – business purchases and acquisitions from other EU member states
• Tax payable on behalf of a supplier
• Tax paid or reclaimed – after a correction has been made
• Any other adjustment made due to VAT rules

We are working with our clients to ensure that all their records are being kept in the most appropriate way so that the transition to Making Tax Digital is as smooth as possible. If you need any advice on Making Tax Digital and how to become compliant contact us by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..