Making Tax Digital

Updated 13 March 2018

The government has published the Value Added Tax (Amendment) Regulations 2018, which outline the requirements for Making Tax Digital for VAT.

The legislation will take effect on 1 April 2019. Businesses will need to implement the changes from the first VAT Return ending after 1 April 2019.

Who will this affect?

All businesses who are VAT registered and have a turnover over the VAT threshold (currently £85,000) will have to comply with Making Tax Digital for VAT purposes.

Those VAT registered businesses with turnover under the VAT threshold do not have to comply with the Making Tax Digital legislation, although may do voluntarily if they so wish.

What will be required under Making Tax Digital?

From 1 April 2019 Businesses will be required to:

  • keep their VAT business records digitally and;
  • Submit their VAT return through compatible software using ‘application programming interface’ (API). 

From the same date the government gateway submission will no longer be available to those businesses under Making Tax Digital for VAT.

Software Options

Most software providers will ensure their bookkeeping software will have the appropriate API to comply with Making Tax Digital. However you must ensure the software being used by your business is the most recent version to maintain the API link or if using a bespoke system that your provider is making the necessary upgrades to be compatible.

At Grafton Jones we support the vision of a digital tax system and as such are dedicated to helping our clients with their digital requirements.  With the additional time given by HMRC this is now the perfect opportunity to get ahead of the game and get the software which is right for you.

We will support any digital software you are currently using or wish to use. 

Please contact us if you wish to discuss your software options or require further information on products available.


Based on details available to us at time of writing (March 2018), once further updates are received from HMRC we will provide additional information