Step 1 of the process to keep your books electronically should have been completed by 1 April, now you need to Sign up for Making Tax Digital for VAT and the process is as follows:

  1. Click for the link on the website then answer questions on the next few screens
  2. Agree that you have accounts on a software product
  3. Agree that it can submit returns via MTD
  4. Enter your current VAT online filing username and password
  5. Confirm your contact details
  6. It will ask you to confirm your email address by clicking on the link it sends – you may need to go “back” on your browser to carry on the process once the email has been confirmed
  7. It will also ask for you to set another backup email address or contact detail, and a memorable word. These can be skipped but it is probably worth setting them now
  8. Confirm you are only registering one business (if applicable)
  9. Confirm business type (limited company/sole trader etc)
  10. Enter your NI Number / Corporation tax UTR / Companies House number depending on type of business
  11. Enter your email address (again!) as it wants to use this to confirm Direct Debit details – you should not complete this process within 72 hours of completing the VAT return
  12. HMRC will confirm your registration by email within 72 hours

Once you have the confirmation you will need to amend your software to MTD registered, and you should then be able to submit VAT returns using the new process.

This is a brief explanation of the process to Sign up for Making Tax Digital for VAT and will help you to complete the process but may not answer every question.  Every business is different so you should therefore seek professional advice before taking any steps based on the contents. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend, Kent – Accountants who “speak your language”