Caroline Miskin explains Making Tax Digital for VAT’s recordkeeping requirements. She answers some common questions and clarifies areas of confusion, including the level of detail needed for digital records, relaxations and trading through digital platforms.
Features and articles
Nick McChesney, the Tax Faculty’s VAT and Duties Committee chair, examines the new construction industry reverse charge and how to prepare for it.
What are the rules and regulations according to HMRC?
Kim Hau assesses the results of a Thomson Reuters survey into how firms are preparing for MTD.
Sources for statistics on accountancy firms by fee income, published as part of the Knowledge guide to statistics on the accountancy profession.
VAT-registered businesses must keep records of sales and purchases, keep a separate summary of VAT called a VAT account and issue correct VAT invoices.
You can adjust your current VAT account to correct errors on past returns if they’re below the reporting threshold, not deliberate and for an accounting period that ended less than 4 years ago.
Usually, VAT-registered businesses submit their VAT Returns and payments to HM Revenue and Customs 4 times a year. With the Annual Accounting Scheme you make advance VAT payments towards your VAT bill - based on your last return (or estimated if you’re new to VAT), and submit 1 VAT Return a year.
Webinars and recordings
This TAXbite explains which businesses are in scope for MTD for VAT and when they must comply with the rules.
An explanation of how bank feeds can be used as part of a business' journey towards meeting the Making Tax Digital requirements for its accounting records.
Neil Warren guides us through the labyrinth of VAT changes since April 2018.
This TAXbite talks about exemptions under Making Tax Digital.
This TAXbite explains how the margin schemes for VAT operate within Making Tax Digital.
This TAXbite explains how the flat rate scheme for VAT operates within Making Tax Digital.
Although many of the implications of Brexit are currently unknown, VAT and customs duties are likely to be affected. This guide outlines the potential tax consequences. This guide was updated following the publication on 23 August 2018 of guidance from HMRC as to what will happen if there is no Brexit deal.
This TAXguide provides guidance on the tax issues connected with let property from the point of view of the landlord. It concentrates on residential property and is aimed at practitioners who are advising individuals who have bought property as an investment, rather than commercial property development businesses. Read a summary here, Tax Faculty members can download the full guide.
In TAXguide 23/17, Neil Gaskell explains the changes introduced on 1 January 2015 to the VAT rules for business to consumer supplies of digital services within the EU. This guidance has been updated to include changes introduced on 1 January 2019. Read a summary here, Tax Faculty members can download the full guide.
Professional Conduct in relation to Taxation.
Money laundering: supplementary guidance for the tax practitioner
The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact email@example.com.
Fully updated guide focusing on each area of the financial statement in detail with illustrative examples. This chapter on accounting for income tax gives a comparison of FRS 102 Section 29 and IFRS, and covers VAT and similar sales taxes, current tax, recognition and measurement of deferred tax, allocation of tax charge or credit, consolidated tax returns and offset of taxable profits and losses within groups, presentation, and disclosure.
A chapter setting out the essential principles of VAT, as set out in the Value Added Tax Act 1994 and subsequent Finance Acts.
This second chapter on VAT explains how the tax is administered by HMRC, as well as a number of schemes which simplify the VAT system.
Short summary of what is chargeable for VAT in the UK, who constitutes a taxable person and how much tax is paid at different rates of VAT.
A high level overview of the framework of VAT administration covering appeals and the interest charged on VAT recovered through the raising of an assessment.
Briefly explains who has an obligation to register for VAT with a worked example for a small business. It also notes the pros and cons of voluntary VAT registration.
This chapter explains the schemes for businesses recovering VAT incurred within the EU.
An overview of exporting from the UK. The chapter covers VAT treatment of direct and indirect exports, customs and excise, and the different types of export declaration.
ICAEW's Tax Faculty responds to the VAT registration threshold call for evidence published by HM Treasury on 13 March 2018.
VAT Postponed accounting letter to FST
MTD - Interest harmonisation and sanctions for late payment
VAT and vouchers
Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.
List of companies who are supplying suitable software to support the MTD for VAT pilot. These suppliers have tested their products in HMRC's test environment and have already demonstrated a prototype of their software to HMRC.
Notice giving updated guidance on digital record keeping and return requirements of MTD for VAT. It explains the digital records that businesses must keep, ways to record transactions digitally in certain special circumstances, and what counts as ‘functional compatible software’.
HMRC guidance on the direct tax obligations of charities, VAT and reliefs or exemptions available. Sections cover Gift Aid, Payroll Giving, donating land, buildings, shares or securities, claims, and audits.
Table from KPMG providing data on indirect tax rates around the world with brief accompanying notes. A separate interactive Tax rates tool allows you to compare tax rates by country or region.
Standard and special VAT rates for EU member states. Updated regularly
Useful online tool for checking the validity of EU VAT numbers. The service is provided by the European Commission and uses data supplied by member states.
Extensive collection of HMRC guidance on rates, thresholds, managing VAT and VAT returns. Contains specific guidance for builders, car dealers, importers and tour operators.
Current and historical thresholds for VAT and VAT accounting schemes.
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