New-Blog-OnPoint Accounting Accounting|Bookkeeping|Payroll & Taxes|business advice consultancy|start up|micro and small businesses|quickbooks|quickbooks online uk|new business ideas

Do I have to send my invoices digitally with MTD for VAT?

No. At the moment, all HMRC are asking for is your VAT return form, which is the same form that we’ve always filled out with the nine boxes. They’re just asking for that to be submitted through accounting software like QuickBooks into HMRC’s digital portal. They’re not asking for any records, et cetera. at this moment in time, but it might be something they ask for in the future.

What HMRC’s vision for MTD is, and what they are doing now are very different. They’ve had to water it down considerably just to get everyone into MTD mindset, so just get a filing through the right portals. Then over the next 10 years, maybe, they would expect to increase the requirements. But at the moment, we’ve just got to file using accountancy software. That is the MTD portal. That is the minimum requirement. Best practice would be to have all your documents stored electronically on QuickBooks, so that if HMRC do a VAT investigation, you can just give them a Read Only access to QuickBooks, and they can see all the documents and all the bank transactions they want to see to validate the VAT return. It makes life easier for you and HMRC, and your accountant, if they do inspect to have everything stored electronically on QuickBooks anyway.


Leave a Reply

Your email address will not be published. Required fields are marked *