Making Tax Digital

What is the aim of Making Tax Digital?

The aim of this initiative is to make it simpler for both individuals and businesses to manage their finances through a new online tax system which will allow users to view personalised tax accounts which provides them with relevant and up to date information.

The initiative came into force on 1 April 2019 and now requires all UK VAT payers over the VAT registration threshold (£85,000) to file their VAT returns via HMRC's new digital platform including Microsoft Dynamics GP & Microsoft Dynamics NAV users with versions older than 2016.

Please note: HMRC have provided an extension for businesses to get digital links in place between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place. 

HMRC’s new platform ends manual keying-in of VAT return totals, that leaves businesses with the options described further down the page.