HMRC have now issued detailed guidance on record keeping and return requirements for making tax digital.
VAT Notice 700/22 clarifies that spreadsheets are an acceptable means of keeping business records, provided that a bridging software is used to link the excel documents to the Government gateway. It includes a number of suggested accounting systems that can be used to comply with MTD for VAT.
You must comply with the regulation if:
The VAT taxable turnover is £85,000. MTD for VAT will apply for the period beginning 1 April 2019, though HMRC have allowed a ‘grace’ period of a year to allow businesses to get up to speed with the new regulation.