VAT-registered businesses with a taxable turnover above the VAT threshold are required to use the Making Tax Digital service to keep records digitally and use software to submit their VAT returns from 1 April 2019.”
There are 2 parts the new regulations, firstly sales invoices, purchases and anything related to the VAT calculation need to be recorded in a software system. Secondly the VAT submission must be done electronically into the HMRC system. Compilators’ products Team 2 and DD5 will be compliant with the new HMRC regulations.
The software satisfies the requirement by recording the information digitally; then when the VAT return is due, an Export file to SAGE or Xero accounting packages satisfies the requirement for electronic submission.