From 1 April 2022, Making Tax Digital (MTD) becomes mandatory for all VAT registered businesses.
Before this date, only business whose turnover was greater than £85,000 had to sign up for MTD, but soon, everyone must keep digital records and submit their VAT returns through MTD.
Information is available on the HMRC website, and there is also a list of compatible accounting software, which includes bridging software for those who do not use recognised accounting software or a simple spreadsheet, some of which is free.
It is possible to apply for an exemption from MTD if it is not reasonable or practical for you to use computers, software or the internet.
This could be because:
- of your age, a disability or where you live
- you object to using computers on religious grounds
- of any other reason why it’s not reasonable or practical
HMRC will consider each application on a case by case basis.
Businesses must keep digital records under Making Tax Digital. This can be done through software. Where a business chooses to use bridging software, digital links must be in place to ensure that records are kept digitally as information is transferred between different platforms.
You must sign up to MTD at least seven days before your first MTD VAT return is due otherwise you may end up paying VAT twice
For more help and advice in the run up to Making Tax Digital, contact our VAT team today.Back to top