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Gift Aid practical issues working group Discussion with HMRC about data issues 8 March 2019 In attendance Richard Bray, Charity Tax Group/Cancer Research UK; Peter Handball, Royal British Legion;
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Making Tax Digital for VAT is required for businesses with a taxable turnover above the VAT threshold of £85,000.
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What is making tax digital for?
Making Tax Digital is for the digitalization of tax reporting, making it easier for individuals and businesses to keep track of their taxes and submit them online.
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Most businesses with a turnover above the VAT threshold are required to file Making Tax Digital for VAT. This includes sole traders, partnerships, limited companies, non-UK entities registered for UK VAT, trusts, and charities.
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To fill out Making Tax Digital for VAT, businesses need to use compatible accounting software to keep digital records and submit VAT returns directly to HMRC.
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The purpose of Making Tax Digital is to make it easier and more efficient for businesses to keep track of their tax obligations and report them accurately to HMRC.
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Businesses need to report their VAT-registered sales and purchases, the amount of VAT they owe, and the amount of VAT they can reclaim.
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