File your VAT online through ANNA’s Google Sheets VAT Filing Add-on

Making Tax Digital or MTD

From April 2021 all VAT-registered businesses that exceeded an annual VAT threshold of £85,000 were required to register for MTD. This meant they needed to maintain their business records digitally and had to file their VAT returns using HMRC-compatible software.

All VAT-registered businesses are now affected

Since April 2022, this requirement has expanded to include any VAT-registered business irrespective of their turnover and their VAT threshold. So if you’re a VAT registered business, no matter your turnover, you now need to comply with Making Tax Digital.

What does complying with Making Tax Digital mean?

Making Tax Digital means VAT-registered businesses are legally obliged to submit their VAT returns using compatible software with an application programming interface (API). This sounds complicated, but it just means that there’s a direct connection between the two applications, so they can talk directly to each other. This maintains an unbroken digital link between your VAT return and HMRC – what you put into your software goes directly to HMRC.

The hope is that in the long run, this type of application will help avoid human errors and will provide a faster and more efficient method for submitting your VAT return online.

Finding the right software

There is a lot of compatible software out there that complies with MTD requirements. However, a lot of it comes with an eye-watering price tag, and businesses may not need every single element of the software they’re sold. In fact, lots of small businesses already prepare their VAT Returns on a spreadsheet and don’t want to transition to a large software package – they just need an API to bridge the VAT Return calculation to HMRC for submission.

More and more businesses are using Google Sheets™ as a free cloud-based alternative to traditional spreadsheet software. And the good news is that if you already use Google Sheets™ to record your VAT, you can easily file your VAT Return straight to HMRC with ANNA’s free add-on.

It’s quick and easy

There are six simple steps to follow to file your VAT Return using Google Sheets™

It’s as easy as that. And it’s totally free.

What if I’m not registered for VAT?

That’s simple enough. Before you can submit a VAT Return, you first need to register with HMRC on the UK government website. You’ll need to create a Government Gateway user ID, and if you are a business you’ll now also need a device or authenticator app to be able to log in. Once you’re registered, HMRC will send you a VAT certificate, complete with your VAT number.