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HMRC issues Making Tax Digital guidance

  • EU VAT
  • 31 July 2018 | Richard Asquith

HMRC issues Making Tax Digital guidance

On 13 July 2018, HMRC published Notice 700/22, updating its requirements for Making Tax Digital (MTD) for VAT. This explains the rules on:

  • Record keeping;
  • Special recording circumstances;
  • The use of obligatory ‘functional compatible software; and
  • The linkage of software packages where a combination of programs are used.

Who must comply – turnover test

From 1 April 2019, VAT registered businesses over the UK VAT registration threshold, currently £85,000, are obliged to follow the new digital rules. So voluntary registered businesses do not. However, only businesses with taxable turnover that has never exceeded the VAT registration threshold will be exempted from MTD.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.