Making Tax Digital for VAT comes to effect on 1st April 2022

From 1st April 2019 most VAT registered businesses with a taxable turnover above the threshold of £85,000 were required to sign up to “Making Tax Digital” (MTD).


This requirement to sign up to MTD is extended from 1st April 2022, to cover all VAT registered businesses whether or not their taxable turnover is over £85,000.


All records must be kept digitally on compatible software packages (a list of which can be found on https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-vat).


If you have already been using accounting software for your business needs, it is imperative to check the list to ensure that your software is compatible or seek advice from your current provider as they may have a “Bridging Feature” that let’s your software link to HMRC’s systems.


Once you are registered and compliant, you will be able to see your quarterly VAT submission dates.


You must submit a VAT Return even if you do not have any VAT to pay or VAT to reclaim.


Some exemptions do apply for MTD, however these are limited to those who are “digitally excluded”. Usually because of religion, disability, age or the remoteness of their location and little to no access to the internet.


At Friend Partnership, we offer a range of services and can assist you dependent on your business needs.


Get in touch with our Tax Team on 0121 633 2000 or e-mail us via enquiries@friendllp.com

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Friend Partnership is a forward-thinking firm of Chartered Accountants, Business Advisers, Corporate Finance and Tax Specialists, based In The UK

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