On 18 December 2017, HMRC published for consultation draft secondary and tertiary legislation to implement “making tax digital” for VAT.

The proposed legislation makes changes to the VAT regime which would require businesses with taxable turnover above the VAT registration threshold to keep and preserve digital records and submit VAT returns to HMRC using functional compatible software.

The consultation period closed on 9 February 2018 and HMRC is analysing the feedback received. The outcome of the review will be published in due course.

A copy of the draft legislation is available to view here.