office@ajrandco.co.uk

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MTD for VAT – Are you ready?

HMRC are advising VAT registered businesses to register for MTD (Making Tax Digital) for VAT before it becomes mandatory from the 1st April 2022.

Designed to eliminate errors and save time, MTD is part of the overall digitalisation of UK tax.

As of December 2021, nearly 1.6 million taxpayers had joined Making Tax Digital for VAT with more than 11 million returns successfully submitted. Around a third of VAT-registered businesses with taxable turnover below £85,000 have voluntarily signed up to Making Tax Digital for VAT ahead of April 2022, and thousands more are signing up each week.

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.

In July 2020, it was announced that all VAT-registered businesses must file digitally through Making Tax Digital from April 2022 regardless of turnover. HMRC is now reminding businesses below the £85,000 threshold of the steps which they need to take to be ready.

How to sign up for MTD for VAT

To sign up to Making Tax Digital for VAT, businesses, or an agent on a business’s behalf, need to:

If businesses have not yet signed up to Making Tax Digital for VAT, they should do so now to ensure they are ready in time for the April 2022 deadline.

If you have any questions contact AJR & Co Ltd