HMRC has published new factsheet CC/FS69 on how VAT-registered businesses can avoid penalties for making tax digital (MTD) for VAT. VAT-registered businesses must keep certain records digitally and file their VAT returns using compatible software. The new factsheet explains the following requirements that business need to observe to avoid being charged a penalty:
file VAT returns using functional compatible software (which can record and store digital records, provide HMRC with information and VAT returns from the data held in those digital records, and receive information from HMRC);
keep records digitally within the functional compatible software;
use digital links to transfer or exchange data (where, for example, data is transferred between software programmes) rather than transferring data manually;
use the checking functions within the software (to verify that returns are correct before they are filed); and
sign up to MTD (noting that the business must have functional compatible software in place before signing up).
HMRC has published new factsheet CC/FS69 on how VAT-registered businesses can avoid penalties for making tax digital (MTD) for VAT. VAT-registered businesses must keep certain records digitally and file their VAT returns using compatible software. The new factsheet explains the following requirements that business need to observe to avoid being charged a penalty:
file VAT returns using functional compatible software (which can record and store digital records, provide HMRC with information and VAT returns from the data held in those digital records, and receive information from HMRC);
keep records digitally within the functional compatible software;
use digital links to transfer or exchange data (where, for example, data is transferred between software programmes) rather than transferring data manually;
use the checking functions within the software (to verify that returns are correct before they are filed); and
sign up to MTD (noting that the business must have functional compatible software in place before signing up).
