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UK Making Tax Digital VAT changes coming

  • EU VAT
  • 13 August 2018 | Richard Asquith

UK Making Tax Digital VAT changes coming

On 1 April 2019, over 2 million UK and foreign businesses with a UK VAT registration must go digital on recording and filing their VAT records.

The big changes include:

Digital record keeping

All VAT transactions, sales and purchases may no longer be held manually or on spreadsheets. Instead, ‘functional compatible software’ which link to HRMC’s Application Programming Interface (API) platform must be used.

Filing VAT returns

Manual keying in of data on HMRC’s portal will no longer be permitted. Instead, software must file electronically directly to the new platform.


A number of business types are exempted from the new requirements including: businesses below £85,000 VAT registration threshold; companies in insolvency; tax payers using the margin and annual VAT return schemes.
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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.