Making Tax Digital

Making Tax Digital (MTD) is the Digital Transformation of the United Kingdom’s Tax System by HMRC.

Taxback International have developed Comply – an innovative end-to-end VAT compliance technology. This Making Tax Digital bridging software, enables your business to manage your UK returns regardless of jurisdiction and to stay compliant. To find out how we can streamline your MTD VAT compliance requirements, contact us today.

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    Timeline of Making Tax Digital

    April 2019 signalled the beginning of the soft landing period for MTD. At this time, the United Kingdom began implementing Phase I of Making Tax Digital (MTD) for VAT requiring making digital filings of the nine boxes of the VAT return through HMRC’s API-portal.

    The first monthly return was through MTD was on 30th April and by June 30th the first quarterly return was filed.

    Who does MTD affect?

    The implementation affected all VAT registered businesses with a taxable turnover above the UK VAT threshold of £85,000. This was then deferred to October 2019 for some types of businesses.

    Adaption to this new system was not entirely straightforward with many businesses struggling to successfully implementing digital programs. Similarly, the HMRC encountered problems on their side.

    A one year soft-landing period allowed businesses more time to implement permanent links whilst using bridging software to transmit their VAT returns digitally. During this grace period the HMRC did not issue penalties for not keeping incomplete digital records.

    Have Questions about Making Tax Digital?

    Contact Taxback International today.

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      Making Tax Digital – Phase II

      Phase 2 of MTD was originally scheduled for April 1st 2020 but was postponed for a year due to COVID-19 lockdowns. This signals the beginning of the major changes including an obligation to maintain digital records for submission to the HMRC or risk penalties.

      • Save time and money

        We fully manage all of your VAT obligations across multiple countries, wherever they arise.

      • Visibility and Control

        Our VAT Compliance technology delivers full visibility over your historic and current global VAT activities.

      • Platforms

        Guaranteed compliance

        Our combination of knowledge-based technology and our in-house VAT experts ensure 100% VAT compliance.