If your business is VAT registered and does not yet submit VAT returns through Making Tax Digital (MTD), action is required (unless your business falls under an exemption).
Previously, HMRC introduced MTD for VAT for all VAT registered businesses with a taxable turnover of more than £85,000. However, from April 2022, MTD for VAT is mandatory for all VAT registered businesses and organisations, regardless of taxable turnover.
For all businesses, this therefore means following MTD rules. This consists of using MTD-compatible software in order to keep digital records. This compatible software package, or other software (like spreadsheets), should be able to connect to HMRC systems.
The current deadlines for sending your VAT returns will not change after you sign up for MTD for VAT, however, businesses should start keeping digital records for their first VAT return period, starting on or after 1 April 2022, and sign up to MTD at least 72 hours before their first VAT return is due.
All VAT businesses must now take steps to switch to MTD, if they have not already done so. HMRC will be writing to all businesses who have not yet signed up to remind them of the actions they need to take.
If you are a VAT registered business and not yet signed up to MTD, please do not hesitate to contact your Drummond Laurie contact for any further guidance on this.
