Have you signed up to HMRC's Making Tax Digital for VAT?

WE LVE NUMBERS!

Traditionally, businesses needing to file a VAT return have done so using HMRC’s online service, however, this is set to close for good on November 1, 2022.

So, what’s next?

From November 1, all businesses and agents will only be able to file VAT returns using MTD (Making Tax Digital) software, though there will be exceptions for any businesses with a digital exclusion exemption.

Some businesses will already be using the system as any companies with taxable turnover above the VAT registration threshold of £85,000 have been required to comply with MTD VAT rules since 2019.

However, the new rules were extended to all VAT registered businesses from their first VAT accounting period starting on or after April 1, 2022.

Even if you are already filing your return using MTD software, your business does still need to register and complete the sign-up process.

According to figures, many businesses are yet to sign-up, with around 10% of businesses above the VAT threshold still outstanding and a bigger figure – up to 55% of those below the threshold are yet to register. HMRC says it has written letters to those who are yet to sign up but has not yet issued any penalties for those who have not done so.

Additionally, HMRC has now stressed that penalties will come into force from November for anyone who does not use the MTD for VAT digital reporting system. A penalty of up to £400 for filing a return which is not an electronic submission can be charged.

Beatons can advise you on how to ensure your business is compliant and help with all aspects of the new VAT return process. Please email info@beatonsgroup.co.uk or call 01473 659777.