If you run a VAT registered business and have yet to sign up to Making Tax Digital then you’re running out of time.
From 1 April 2022, Making Tax Digital for VAT becomes mandatory for all VAT-registered businesses. It has been compulsory for those with a turnover above the £85,000 VAT threshold since April 2019.
Being in the Making Tax Digital (MTD) system means you must submit your VAT returns using MTD compatible software, and your first return on or after 1 April must be submitted in this way.
Making Tax Digital for VAT is part of the overall digitalisation of the UK tax system. As of December 2021, nearly 1.6 million businesses had joined Making Tax Digital for VAT with more than 11 million returns successfully submitted.
Since April 2019, businesses with a taxable turnover above £85,000 have already been required to follow Making Tax Digital, keeping digital records and filing VAT returns using Making Tax Digital compatible software.
There are some exemptions where VAT registered businesses do not have to submit their returns via the MTD system.
To sign up to Making Tax Digital for VAT, businesses, or an agent on a business’s behalf, need to:
If you need any help or advice with Making Tax Digital for VAT get in touch with the accountancy team at Optimum. We support business owners in Swindon, Wiltshire, Cheltenham, Gloucestershire and the surrounding area.