source: HM Revenue and Customs Research Report 480
Who became affected?
VAT Registered businesses with turnover above the VAT threshold (£85,000 excluding VAT).
How were they affected?
VAT transactions now have to be recorded digitally using apps and software & similarly the VAT Return itself also has to be submitted this way too! It is no longer possible to submit a VAT return through HMRC’s own VAT online services.
As of April 2020, the remaining VAT Registered businesses, (those of which who have voluntarily registered for VAT) with a turnover below £85,000 will be required to follow the same process.
As of April 2020+, with a start date still to be confirmed, self-assessment and corporation Tax will start to be rolled out to MTD, affecting sole traders, partnerships, landlords and trading companies. Likely the same reporting through digital software will be mandatory!