What do I need to do?
If you are not already keeping your accounting records in a digital format then you will need to do so in order to be ready for the reporting changes. Those records need to be capable of being submitted to HMRC.
Those records will need to provide details of
Permanent Data e.g.
- Name of the business
- Address of the business
- VAT Registration number
- Details of any VAT scheme being used
Transaction Data for both supplies made and received e.g.
- Tax point dates
- Value and type of supply
- VAT rates charged
- Daily takings
Whatever form of digital records you choose to keep the software has to be a functional compatible software that is to say must be capable of communicating with the HMRC portal. This software must be API (Application Programming Interface) enabled.
Here at Digital Tax Records we recommend using either Sage or Xero both of which are API enabled.