top of page
Search
emma3926

Making Tax Digital (MTD) for VAT is Compulsory

For VAT periods starting on and after 1 April 2022 all VAT records must be recorded digitally and returns must be submitted under the Making Tax Digital (MTD) regime.


If you are not already submitting your VAT returns using MTD-enabled software (or asking us to do so) you need to take action. Review how you record your VAT transactions - using a spreadsheet is acceptable under MTD. However, you will need software to transmit the VAT return data to HMRC without retyping or copying and pasting the figures. There is plenty of choice in the market, from cloud-based systems to relatively simple bridging software that will connect to spreadsheets. We can help you to decide what is right for your business.


The next stage is to sign-up for MTD with HMRC. Although you are already VAT registered there is a separate mechanism to get into the MTD system.


We can help with this. If you pay your VAT by direct debit you must leave five days after the due date for your last VAT return before signing up for MTD. But do not delay after this as you need to be in the MTD system at least seven days before your first MTD VAT return is due. Do not assume that you can ignore MTD; HMRC can impose nasty penalties if you refuse to comply, such as £400 for failing to submit the VAT return in the correct format. If your turnover is relatively low and you do not expect it to increase, we can discuss whether it would be sensible for you to deregister to avoid the MTD regime.

11 views0 comments

Recent Posts

See All

Comments


Post: Blog2_Post
bottom of page