For some small businesses the additional cost and complexity of using accountancy software, even user friendly and relatively inexpensive options such as Xero and Quick Books Online (QBO), may not be appropriate and a spreadsheet solution may be all that is required for them to comply with the new digital records requirements.
Therefore in order to meet the filing requirements under MTD, they will require bridging software to enable the VAT return submission.
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Subscribe to our newsletterWhen MTD for VAT came into effect in April 2019, it introduced the requirement for VAT registered businesses with a turnover above the VAT threshold to keep the records in a digital format and submit their VAT returns via software.
Making Tax Digital (MTD) for VAT makes it mandatory for most VAT Registered businesses to keep electronic records and submit VAT Returns through compatible software. This commences from the first VAT period starting on or after 1 April 2019.
Record payments based on supplier statements rather than invoices Historically, businesses have been required to record every single purchase …
