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Photo of Peter Jones holding a tablet in a barber shop - Making Tax Digital

Making Tax Digital for existing customers

Learn about Making Tax Digital (MTD) and what HMRC’s scheme means for your business, and discover the steps you need to take now to submit VAT returns. If you would like to speak to a MTD specialist now, you can call us on 0800 952 0082. 

You’re in safe hands

Making Tax Digital is here. Since it’s launch on 1st April 2019, businesses are now mandated to submit their VAT returns digitally via MTD-ready software. We’re here to help you through the transition period and beyond. 

Visit our Help Centre and select your current product. You’ll find a number of help articles, including how to find out if your Sage software is MTD compliant. 
Using an old version of Sage 50 ? You may need to upgrade your software. We’ll help you with the simple transition to an MTD-ready version. 
Find out when your first submission date will be under Making Tax Digital. 

Most Frequently Asked Questions : Making Tax Digital

Our MTD-ready products are : Sage Business Cloud Accounting, Sage Business Cloud Accounting Start, Sage 50cloud Accounts and Sage 200cloud.

To find out if your Sage 50 Accounts software is MTD-ready, enter your version and serial number in our checker tool here

If you’re not on our MTD-ready software, call our team on 0191 479 5988 and we’ll be happy to discuss your options.

 

Yes, every business needs to sign up with HMRC for Making Tax Digital. If you don’t sign up, your submission will not be successful.

Please note, businesses that pay VAT by Direct Debit cannot sign up in the 7 working days leading up to, or the 5 working days after, sending a VAT Return.

Check out our handy checklist here for what you need to do next. 

 
Sage is committed to investing in our Sage Business Cloud software and all of our time and resource is focused on making these solutions really deliver for our customers. If you’re on software which isn’t MTD-ready then the best option is to move to the Sage Business Cloud. We are aware that making this move immediately could be a challenge for some businesses, so we have developed solutions for a number of products which will enable you to meet your requirements. Speak with our sales team on 0191 479 5988 or your account manager to discuss the best option for you.
You’ll need to keep your records digitally – this means that you are required to store a digital copy of the transactions which make up the 9 box VAT return. This needs to be kept in functional compatible software. Functional compatible software is Software or a set of software programs which must : record and preserve digital records, send the data to HMRC through the API, receive information from HMRC via the API.
You do not need to keep any additional business records because of MTD. However, business records must be kept digitally to be compliant. If you use spreadsheets, the spreadsheets must be able to submit the required data to HMRC digitally. The spreadsheets must preserve any digital records so you will need to ensure that the data is not accidentally over-typed or deleted – Software will make this much easier.

You will not have to follow the Making Tax Digital rules where HMRC is satisfied that : your business is run entirely by practising members of a religious society whose beliefs are incompatible with the requirements of the regulations (for example, those religious beliefs prevent them from using computers). It is not reasonably practicable for you to use digital tools to keep your business records or submit your returns, for reasons of age, disability, remoteness of location or for any other reason, you are subject to an insolvency procedure.

HMRC will decide if you meet exemption criteria so check with them directly and don’t just assume you meet the criteria, you don’t want to end up with a penalty.

You do not need to keep any additional business records because of MTD. However, business records must be kept digitally to be compliant. If you use spreadsheets, the spreadsheets must be able to submit the required data to HMRC digitally. Sage Business Cloud can do all of the hard work for you and ensure that you’re able to calculate and submit your return quickly and easily. If you submit grouped VAT, we are currently looking at how we can support this. We will be providing the functionality and will share more information soon.
HMRC have been clear on this and section 5.3 of the communication pack states HMRC will not be offering its own software products, but will provide the Application Programming Interfaces (APIs) that commercial software developers will use to develop a range of applications that will enable businesses to keep their records digitally and integrate with HMRC systems.

We're here to support you

We have a range of options to ensure you're ready and comfortable with MTD, in which ever way works for you. 

Free MTD consultation

Need help selecting which product solution is right for you? We have experts on hand to advise the best way of ensuring your software is ready to go.

Making Tax Digital Webinar

Join our free 45-minute webinar to get the low-down on Making Tax Digital, what you need to know and do in the lead up to your submission.

Making Tax Digital for 50cloud webinar

If you're already on the latest version of Sage 50cloud Accounts and want to know what's next, join us for a free 30-minute webinar to hear the next steps in getting MTD-ready and start submitting.

Bespoke 121 training

Let us show you exactly what to do and when in a bespoke 121 session, tailored to your needs. Call us on 0191 479 5988 to book your place.

Demo video

Sage helps you handle the entire accounting process, all the way up to tax preparation. We've worked closely with HMRC to make sure you have everything you need for digital VAT submissions for Making Tax Digital. 

Solve MTD readiness with the latest version

Sage Business Cloud
Sage 50cloud Accounts

Sage 50cloud Accounts

Sage Business Cloud
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Sage 200cloud

The ultimate guide to Making Tax Digital

Learn about Making Tax Digital (MTD) and what HMRC’s new scheme means for your business, and discover the steps you need to take now to submit VAT returns. The guide features advice from Peter Jones on why your business should embrace the digital world, and there’s a series of FAQs that answer key questions you may have around MTD.

Making Tax Digital news

Find out what’s happening in the world of MTD. Stay abreast of breaking news, trends, and featured articles.

What is an MTD digital link? Get ready for new guidelines from HMRC

What is an MTD digital link? Get ready for new guidelines from HMRC

Making Tax Digital will change when the 100% digital link rule comes into force in April 2021. Here's what you need to know.

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New year, new legislation: What accountants need to know in 2021

New year, new legislation: What accountants need to know in 2021

Here's how accountants can help clients with Brexit, MTD, IR35, VAT reverse charge for construction and other compliance needs in 2021.

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New year, new legislation: What businesses need to know in 2021

New year, new legislation: What businesses need to know in 2021

Learn about legislation your business needs to be aware of in 2021, covering Making Tax Digital, Brexit, coronavirus measures and more.

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Voluntary VAT: Here's how to file VAT Returns after April 2021

Voluntary VAT: Here's how to file VAT Returns after April 2021

How voluntary VAT payers submit VAT Returns is changing in April 2021 and then again in April 2022. Here's what you need to know and do.

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MTD for Income Tax: What accountants need to know and do today

MTD for Income Tax: What accountants need to know and do today

The government has announced the start date for MTD for Income Tax. Here's what accountants need to know – and do right now.

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MTD for Income Tax: What Making Tax Digital means for sole traders

MTD for Income Tax: What Making Tax Digital means for sole traders

MTD for Income Tax is due to start in April 2023. Learn about the requirements and rules, and discover what you have to do to get ready in time.

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How an accountancy firm moved its clients to cloud accounting

How an accountancy firm moved its clients to cloud accounting

Learn about the digital transformation of Finlayson & Co accountancy firm and its clients for Making Tax Digital and how your firm can follow suit.

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Making Tax Digital: What deferred businesses need to do now

Making Tax Digital: What deferred businesses need to do now

Deferred businesses have to adhere to Making Tax Digital for VAT. Discover how to sign up for it and learn what is required to file MTD for VAT returns.

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