HMRC have now issued their detailed guidance on the digital record keeping and return requirements for Making Tax Digital (MTD) for VAT.
 
VAT Notice 700/22 clarifies that spreadsheets may still be used to keep business records provided that there is bridging software that links to the Government gateway.
 
There will however be a one year “grace” period during the first year of MTD when businesses will not be required to have digital links between software programs, referred to in the VAT Notice as a “soft landing”.
 
The VAT notice includes a number of helpful examples illustrating different accounting systems and the digital links required to comply with MTD for VAT.
 
The VAT notice is essential reading for all VAT registered businesses.