Making Tax Digital for VAT becomes mandatory for all VAT registered businesses from 1 April 2022.
Businesses with a taxable turnover above £85,000 have already been required to follow Making Tax Digital, keeping digital records and filing VAT returns using compatible software since April 2019.
From 1 April 2022, it will be mandatory for all VAT registered businesses to file digital VAT records to HMRC using a compatible software package, regardless of turnover; you will no longer be able to submit information manually.
The use of Making Tax Digital Software will allow you to submit VAT returns directly to HMRC without needing to visit HMRC’s website.
HMRC see the requirement for MTD as a way to make it easier for taxpayers to get their tax right through the improved accuracy that digital records provide.
The deadline for sending VAT returns and making payments will stay the same.
Those who do not join Making Tax Digital for VAT may be charged a penalty for failure to do so.
We can support businesses with getting ready for MTD for VAT and provide MTD compliant software if required.
Setting up digital links can take some time, so it is important to act today.
Check to see if the software you currently use is MTD compliant
Disclaimer: The information in this article is provided for general information only and does not constitute legal or professional advice. We cannot accept responsibility or liability for any actions you may take, or not take, based on this information.
