HMRC has ruled that the following must be kept digitally in order to comply with Making Tax Digital for VAT:

• Business name and contact details

• VAT number & scheme used

• Adjustments

• VAT on supplies made & received

• Time of supply or receipt

• Net value (excluding VAT)

• Rate of VAT charged or that you will claim back

• Daily Gross Takings (DGT) – retail scheme users only.

The following records can be kept digitally but this is not an HMRC requirement:

• Supplies not included on your VAT return

• Physical records/evidence related to VAT transactions (eg. receipts and invoices) Itemisation, where supplies involve multiple quantities or VAT schemes

• Reverse-charge transactions

• Corrections

• Purchase details (this is an option for flat rate scheme users only, and not if they’re capital expenditure items)

• Documentation or calculations related to margin scheme entries

A spreadsheet is fine for recording and storing all of this information, but you’ll still need to link it with other software in order to file your details with HMRC. We can help you by bridging your spreadsheets to send your VAT data to HMRC online.

If you’d rather keep things simple and do everything in one place, we recommend using HMRC-recognised software for your record keeping.