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HMRC has published a factsheet explaining how businesses can avoid incurring making tax digital (MTD) penalties.
Under MTD VAT registered businesses must keep records digitally and file their VAT returns using software. As well as signing up to MTD for VAT they must
- file their VAT returns using functional compatible software – failure to do so may result in a penalty of up to £400 for every return filed;
- keep records digitally in an electronic account - HMRC may charge a penalty of between £5 to £15 for every day on which a business fails to meet this requirement;
- use digital links to transfer or exchange data – use of ‘cut and paste’ or ‘copy and paste’ is not a digital link. Failure to comply may result in a penalty of between £5 to £15 for every day this requirement is not met; and
- use the checking...
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