On 1 April 2019, HMRC published an updated policy paper which provides an overview of Making Tax Digital for VAT.
VAT registered businesses with a taxable turnover above the VAT threshold are now required to keep digital records and submit tax returns for VAT periods starting after 1 April 2019 using the Making Tax Digital software. Information from their digital records is sent directly to HMRC which should reduce the amount of tax lost due to avoidable errors.
There are a small number of VAT registered businesses whose circumstances are complex and these businesses will not be subject to the Making Tax Digital requirements until 1 October 2019.
A copy of the updated policy paper can be viewed here.