HMRC - MTD Authorisation

What is Making Tax Digital (MTD)?

The following comments are taken from the HMRC web-site.

Making Tax Digital is a key part of the government's plans to make it easier for individuals and businesses to get their tax right and keep on top of their affairs. HMRC's ambition is to become one of the most digitally advanced tax administrations in the world. Making Tax Digital is making fundamental changes to the way the tax system works ? transforming tax administration so that it is:

Making Tax Digital for VAT

We've taken a major step forward in this ambition with the introduction of Making Tax Digital for VAT. Our pilot service is open to around half a million businesses whose affairs are up to date and straightforward. We will extend to most other business types over the coming months. VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns from 1 April 2019.

The exception to this is a small minority of VAT-registered businesses with more complex requirements. As part of planning for the VAT pilot, HMRC continued to engage with stakeholders and listen to their concerns about business readiness for Making Tax Digital. We have made the decision to delay mandation for these customers until 1 October 2019 to ensure there is sufficient time to test the service with them in the pilot before they are mandated to join.

If you run a VAT-registered business with a taxable turnover above the VAT registration threshold (currently £85,000) you are required to keep digital VAT business records and send returns using Making Tax Digital (MTD)-compatible software. The vast majority of businesses will need to do this for VAT periods starting on or after 1 April 2019. Businesses with a taxable turnover below the VAT threshold can also sign up for MTD for VAT voluntarily.

Activating MTD within Liberty Accounts

HMRC currently only allow VAT 100 via Making Tax Digital. As other types are made available by HMRC you will need to renew your authorisation here with the additional types selected. All other filings made from Liberty such as VAT ECSL, P11D Expenses & Benefits, RTI Payroll, and Gift Aid Claims continue to require the Government Gateway user name and password.

Note that MTD authorisations are expired by HMRC after 18 months. We recommend you renew your authorisations each year to avoid problems caused by expired authorisations.

Navigate to the HMRC menu and select MTD Authorisation. Click on the link for more detailed guidance

HMRC - MTD Authorisation