Records must be kept digitally under MTD and therefore paper records are no longer permitted. Excel can continue to be used however the spreadsheets must be API enabled or digitally linked to API enabled software which is used to calculate and file the VAT return. Even though your first VAT return to be filed in this way is not until the VAT period starting on or after 1 April 2019, you may wish to consider introducing software from the start of your next accounting year.
Businesses need to consider which system they would like to use (HMRC have published compatible software providers here) or alternatively we can maintain your records and file the VAT return on your behalf using Xero. Mitchell Charlesworth is a Xero Platinum partner with over 300 clients using Xero. This means we have extensive knowledge about the software to ensure that it is tailored to your business. Xero consulted with HMRC on MTD and it is fully compatible for MTD.
