Making Tax Digital

Making Tax Digital - for VAT

16 May 2021

Records you must keep digitally

VAT registered businesses with a taxable turnover of more than £85,000 must follow the rules as set out by HMRC for "Making Tax Digital for VAT" by keeping some records digitally, unless of course;

your business applied for an exemption
your business uses the VAT GIANT service

If your business turns over less than £85,000 you can choose to sign up to Making Tax Digital

The records that you must keep digitally are;

your business name, address and VAT registration number
any VAT accounting scheme you use
the VAT on goods and services you supply for example everything you sell, lease, transfer or hire out (supplies made)
the VAT on goods and services you receive, for example everything you buy, lease, rent or hire (supplies received)
any adjustments that you make to a VAT return
the "time of supply" and "value of supply" (value excluding VAT) for everything you buy and sell
the rate of VAT charged on goods and services you supply
reverse charge transactions - where you record the VAT on both he sale price and the purchase price of good and services you buy
your total DAILY gross takings if you use a retail scheme
items you can reclaim VAT on if you use the Flat Rate Scheme
your total sals, and the VAT on those sales, if you trade in gold and use the Gold Accounting Scheme

You also need to keep digital copies of documents that cover multiple transactions made on behalf of your business by:

volunteers for charity fundraising
third party business
employees for expenses in petty cash

YOU MUST add all of your transactions to your digital records however you DO NOT at this point in time need to scan paper records like invoices or receipts

Newer Post >

Homebuyers in Stamp Duty Sprint Before April Hike

by PH186232 • 20 February 2025

With the 1st April deadline looming, its reported that 550,000 homebuyers are racing to complete purchases before stamp duty jumps back to its 2022 levels. We have read that sales awaiting completion are up 25% from last year, with an average five-month wait putting pressure on buyers to beat the deadline. Currently, first-time buyers pay no stamp duty on homes up to £425,000 when purchasing a property worth up to £625,000, but from 1 st April, that drops to £300,000. The upper limit will also fall from £625,000 to £500,000. It's not just the first-time buyers taking a hit, currently stamp duty is only owed on amounts over £250,000, however from 1 st April, only the first £125,000 will be exempt. Despite the cost increase, it looks like most buyers are still pressing ahead, with some even renegotiating offers to offset the hike. According to our research, regardless of the impending cost increases, property experts such as Rightmove are predicting the demand to stay strong; especially if interest rates continue to fall. With mortgage rates already dipping below 4%, we believe buyers remain hopeful for a more affordable market ahead.