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Making tax digital

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All VAT registered businesses with a taxable turnover above the VAT threshold of £85,000 should be compliant (as of 1 April 2019) with HMRC Making Tax Digital reporting requirements.

This also applies to all VAT registered charities. For those charities that have had their start date deferred to October 2019 or after, you can use Charity Tax Group’s news to make sure you are well prepared

VAT registered organisations will be required to keep digital records and send the returns to HMRC using new Making Tax Digital-compatible software. In the initial year-long soft-landing period, this will require bridging software at the minimum. After April 2020, the mandated start date, organisations will need to have fully compatible software that is HMRC approved.

Why make tax digital?

The intention of HMRC is that these new digital processes will eliminate the majority of previously paper-based processes, increasing the effectiveness and efficiency of the system for taxpayers in the long term.

Ensuring compliance with the new requirements

The information required by HMRC and the deadlines for VAT returns and payments are not changing.

The Charity Tax Group have a fantastic page of resources to comprehensively break down the new requirements in more depth, which can be found here.

There is a variety of different software available to help with compliance, depending on the needs of your organisation. Check with your own software supplier to see what they are offering, as they may be able to give you a deal.

PwC is offering a simple, spreadsheet-based piece of software that is HMRC-approved and is free to registered charities.

Last reviewed: 01 October 2019

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This page was last reviewed for accuracy on 01 October 2019

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