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What is an MTD digital link?

What is an MTD digital link?

As MTD (Making Tax Digital) approaches its first anniversary in April 2020 it may seem like old news for those who have adopted the technology and are already filing their VAT digitally. However, many businesses took advantage of HMRC’s ‘soft landing’ period, during which copying and pasting data was accepted as a type of digital link.

With the digital footprint in mind a lot of businesses made incorrect assumptions about digital links.

A digital link occurs when the VAT data required for MTD is transferred between two digital places, or when data is recaptured or modified when moving it between two digital places.

HMRC has strict rules on what defines a digital link. In his latest blog, Adam Prince, VP Product Management, Compliance, Brexit and Migration at Sage discusses the digital link in greater detail and explains what is, and crucially, what is not considered as a digital link.

Read Adam’s blog in full here.

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