As part of the expansion of the scope of Making Tax Digital (MTD), it has been announced that from the first VAT period occurring after 1st April 2022, all UK VAT registered businesses will be required to submit VAT returns using MTD compatible software.
This marks a change from the current application of MTD which requires traders with a taxable turnover above the VAT registration threshold to submit VAT returns electronically and keep digital records, however from April 2022 all UK VAT registered business will be required to operate MTD.
As well as affecting traders with a smaller turnover, larger businesses such as those supplying services to non-UK customers will be required to maintain records and submit returns in conjunction with MTD requirements.
It is stated within HMRC’s policy paper on this matter that these changes will affect up to 1.1m VAT registered businesses. As such, if you or your clients will be one of the traders impacted by these new changes and require advice on the operation of Making Tax Digital, including the relevant software and the impact this has on recordkeeping and reporting obligations, please call our free VAT helpline today.
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