HMRC has published new factsheet on how businesses can avoid penalties for Making Tax Digital for VAT.
Under MTD, VAT registered businesses must keep certain records digitally and file their VAT returns using software.
Businesses that do not do this can be charged penalties. HMRC's factsheet tells you what to do to avoid being charged a penalty. It explains the following requirements that you must observe to avoid being charged a penalty:
file your VAT return using functional compatible software
keep records digitally
use digital links to transfer or exchange data
use the checking functions within your software
sign up to MTD
Further details on each point can be found in the factsheet.