Quarterly reporting on VAT

The tax world is changing and businesses will no longer report their tax affairs once a year. Quarterly reporting will become the standard. Starting with VAT this is mandatory from April 2019 for most VAT-registered organisations. Although Making Tax Digital (MTD) is a significant change many mid-market and larger businesses already file their VAT returns digitally. But they must now record transactions in the same way requiring MTD-compliant accounting software. The good news is that this will save paper by storing data digitally make the quarterly process more manageable and provide a better reflection of the business’s tax affairs with less likelihood of errors occurring. It will also increase the productivity and performance of many accountancy and tax practices.

Why MTD came about

HMRC introduced MTD because it believed that substantial tax losses were being suffered through clerical errors carelessness legal interpretation insolvency...