Are you prepared for MTD for VAT on 1 April 2022?
You've probably heard the phrase Making Tax Digital (MTD) for VAT thrown around a lot over recent years - but what is it all about, and what does it mean for your business? Well, to put it simply, it really depends on whether your business is registered for VAT with HMRC. If not, then you can stop reading now!
However, if you are VAT registered, you'll need to ensure that you're compliant with the MTD rules from 1 April 2022. Making Tax Digital (MTD) for VAT requires all VAT-registered businesses to keep records digitally and submit their VAT Returns using MTD compliant software.
Previously, only businesses with taxable income exceeding £85,000 were legally required to register for MTD for VAT, and have been submitting MTD VAT returns since 1 April 2019. This did not include businesses that were voluntarily registered for VAT - however this will now be changing from 1 April 2022.
Whilst there a couple of key changes to the way records are kept and VAT returns are submitted, the core operations of VAT remain unchanged:
- Frequency: monthly, quarterly or annually
- Payments: due on current payment dates
- Records: no additional recording requirements (just the way records are stored)
- Exemptions: current exemptions from online filing apply
If you’re a VAT registered business, we’ve prepared a short guide to help guide you through the steps you’ll need to take to ensure your business is compliant with the MTD requirements from 1 April 2022.
Looking for help with your MTD VAT returns?
Our experienced team have a wealth of knowledge about MTD for VAT and are here to support you through the transition. To find out how we can help, give our Business Development Manager a call on (0121) 295 8884 or email at firstname.lastname@example.org.
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