LB Group
Professional, Proactive, Partner-led advice
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01473 359720
01206 867551
01245 254780
0208 221 8282

Professional, Proactive,
Partner-led advice


LONDON: 0208 221 8282
CHELMSFORD: 01245 254780
COLCHESTER: 01206 867551
IPSWICH: 01473 359720


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What is Making Tax Digital?

Making Tax Digital (MTD) is a government initiative to update how HMRC collects and processes agents and tax payers data, transforming from paper and online to digital. The primary aim of MTD is to make filing returns easier by utilising data already held by HMRC/tax payer/agent and making this a more efficient process.

What is MTD for VAT?

MTD for VAT, is the next focus for MTD and the government focusing on how it handles the data coming in from VAT returns.

How to be compliant for MTD for VAT?

The current minimum requirements for submitting a VAT return to HMRC are:

  • All accounting record keeping has to be in a digital format, HMRC has confirmed that excel is an acceptable format for this.
  • To submit the boxes 1-9 using HMRC API enabled software. This can either be in the form of a third party ‘bridging’ solution that reads and submits excel data or from the latest bookkeeping API enabled software such as Xero or Sage etc.

What are the deadlines?

So far the deadlines are:

MTD for VAT: 1 April 2019
Corporation tax submissions: delayed and not expected until 1 April 2020 at the earliest and subject to change.
Income tax: you can already voluntarily make submissions to HMRC under their pilot scheme instead of filing tax returns. However we recommend to hold off on doing this until plans are finalised. No current deadline.

What are the exemptions?

Companies (including sole traders) whose turnover is below £85k registration threshold can carry on to submit their VAT returns using the online portal. They can also voluntarily submit their returns using the MTD portal.

Companies with more complicated VAT requirements are being deferred for MTD until October 2019 while further testing of software is undertaken. These are companies that fall into the following categorises are:

Click here to see the companies that fall into the following categorises of exemption
  • Trusts
  • ‘Not for profit’ organisations that are not set up as a company
  • VAT divisions
  • VAT groups
  • Public sector entities required to provide additional information on their VAT return, including Government departments and NHS Trusts
  • Local authorities
  • Public corporations
  • Traders based overseas
  • Those required to make payments on account
  • Annual accounting scheme users.

How to submit VAT returns as an agent come 1 April 2019.

LB Group are currently trialling CCH software, which has the capability to submit clients returns using Excel, Xero, Sage etc. data by connecting to the clients account systems. There will be a further update on this when we have made a decision on this.

LB Group Limited registered in England © 2019 Company Number: 2796741. Associate Directors are not statutory directors of the firm.

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