MTD for business – Overview
- Businesses and organisations (which includes those with income from property) are required to maintain digital accounting records. Maintaining paper records ceases to meet the requirements of the tax legislation.
- Businesses and organisations are required to use a functional compatible software product to submit updates and returns to HMRC. The software uses HMRC’s API (Application Program Interfaces) platform to submit information to HMRC. The current HMRC online tax return services for the relevant tax are withdrawn when a business signs up to MTD.
MTD for VAT

- Maintain their accounting records digitally in a software product or spreadsheet. Maintaining paper records no longer meets the requirements of the tax legislation.
- Submit their VAT returns to HMRC using a functional compatible software product that can access HMRC’s API (Application Program Interface) platform.
- on or after 1 April 2022
- Keep records in a digital form.
- Preserve records in a digital form.
- Create a VAT return from the digital records.
- Provide HMRC with VAT returns and voluntary information by using the API (application program interface) platform.
- Receive information from HMRC using the API platform. This includes messages about a requirement to file and confirmation of successful filing and will allow HMRC to send ‘nudge’ messages to the business when that functionality is developed.
- The name of the business or organisation.
- The address of the principle place of business.
- The VAT registration number.
- Details of any VAT accounting schemes used.
- The time of supply.
- The value of the supply.
- The rate of VAT charged.
- The time of supply.
- The value of the supply including any VAT that is not claimable by the business.
- The amount of input tax to be claimed.
- The output tax it owes on sales.
- The tax it is required to pay on behalf of its suppliers under the reverse charge procedure.
- The tax that needs to be paid following a correction or error adjustment.
- Any other adjustment required by VAT rules.
- The input tax it is entitled to claim from business purchases.
- The tax that it is entitled to reclaim following a correction or error adjustment.
- Any other necessary adjustment.
Software for MTD

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