If you are a VAT-registered business, then you will know that by law, you must now sign up for Making Tax Digital (MTD) and use MTD-compatible software to keep your VAT records and file your VAT returns.
This change is coming into place on Tuesday, 1 November 2022. We have informed our clients, but we wanted to write this article for other businesses, particularly new businesses that do not know there is a new process for filing VAT returns.
If your business files annual VAT returns, you can still use your VAT online account until 15 May 2023.
You may have to pay the penalty if you do not sign up for MTD and file your VAT returns through MTD-compatible software.
If you haven’t already done this, here are the steps you must follow to ensure you are MTD compliant.
- Find MTD- compatible software that is right for your business. This link gives you a list of software to choose from – Finding software that’s compatible with Making Tax Digital for VAT.
- Check the permissions in the software so you can file the VAT returns. If you are unsure how to do this, click on this link – Manage permissions for tax software.
- Start to keep all your records digitally for your VAT returns. If you are unsure what records you need to keep, you can find out more by clicking on this link – Charge, reclaim and record VAT.
- The final step is to sign up for MTD on the GOV.UK website – Sign up for Making Tax Digital for VAT.
We hope you found this article helpful. If you have not signed up for MTD for VAT or you want to check if your business is exempt, then you can contact us, and we are more than happy to advise you. You can call us on 10623 490 120 or email