1 Month until all VAT-registered business must file through MTD

Making Tax Digital

From 1 April 2022, all VAT registered businesses must file digitally through making tax digital (MTD). VAT registered businesses with turnover above £85,000 will already be doing this, but smaller businesses could previously claim exemption.

 

Businesses need to have signed up to MTD for their first VAT return starting on or after 1 April 2022. This will cover the quarter ended 30 June 2022 onwards or April 2022 if completing monthly VAT returns. Businesses must sign up to MTD at least five days after their last non-MTD VAT return deadline date, and no less than seven days before the first MTD VAT return deadline date.

 

Under the new rules, it will be mandatory to keep digital records under MTD. This can be done through software or by using bridging software. Bridging software must have digital links in place to ensure that records are kept digitally as information is transferred between platforms.  

 

Those who do not comply will be charged a penalty for failure to do so. Some VAT-registered businesses may be eligible for an exemption from MTD, if it is not reasonable or practical for them, for example if they have a poor broadband connection.

 

There are various accounting packages that are available to meet the MTD requirements, such as QuickBooks and Xero. For further assistance with moving to such a package or for more information regarding MTD for VAT, please contact your local Lentells office;

Chard - chard@lentells.co.uk, 01460 64441

Seaton - seaton@lentells.co.uk, 01297 20584

Taunton - taunton@lentells.co.uk, 01823 286274