Making Tax Digital for VAT – are you prepared for the April 2022 deadline?
Making Tax Digital for VAT becomes mandatory for all VAT-registered businesses from 1 April this year.
Back in July 2020, HMRC announced that all VAT-registered businesses must file digitally through Making Tax Digital from April 2022, regardless of their turnover. Even if your business turnover falls below the £85,000 UK VAT threshold, if you remain voluntarily VAT registered then you still need to comply with Making Tax Digital.
To sign up to Making Tax Digital for VAT, a business, or an agent on a business’s behalf (your accountant for example) need to:
Choose suitable functional compatible software.
keep digital records starting from 1 April 2022 or the beginning of their first VAT period after this date; and
sign up and submit their MTD compliant VAT Return from their compatible software.
If your business is not yet signed up to Making Tax Digital for VAT, it is vital that this is done as soon as possible to ensure the April 2022 deadline is met. If you need help with this, we can help you choose, set up and use the most suitable software for your business, ensuring compliance with the requirements of Making Tax Digital.
In some cases, you might need two pieces of software and, to remain compliant with Making Tax Digital, there must be a digital link between them that we can help you set up and maintain.
If you have any questions about MTD for VAT, including the most suitable software for your business, please speak with your usual contact at WR Partners or Andrew Richardson from our digital solutions team by e-mailing arichardson@wrpartners.co.uk.