Making Tax Digital for VAT Compulsory from April 2022 Reminder
Currently, only VAT-registered businesses in the UK with taxable turnover above £85,000 are required to submit their VAT returns using ‘functional compatible software’ and store their VAT accounting records digitally.
From 1st April 2022, all VAT-registered businesses will be required to comply regardless of their taxable turnover.
Those businesses will need to follow the Making Tax Digital (MTD) for VAT rules for their first full VAT period that falls after the 1st of April and onwards.
Software & Records
You must keep digital records for VAT, and if you are using more than one piece of software they must be digitally linked.
If you currently use cloud accounting software, simply sign up for MTD for VAT via the HMRC MTD Portal and then activate the feature in your software.
If you use desktop accounting software, you may need to update your desktop accounting software for MTD. If your software is very old, it may not have any MTD update and you will need to consider alternative software.
If you use spreadsheets or other manual records you will need to look into setting up compatible software for recording VAT details and filing VAT returns.
When should I register for MTD?
The sooner the better, but you must register before filing your first VAT return after 1 April. Registering early will let you get used to any new software and processes well ahead of any filing deadlines.
How MATCH can help
We offer a range of services to support our clients, including:
- Setting up cloud software
- Preparing accounting records and VAT returns
- Reviewing VAT returns prepared by the client, prior to HMRC submission.
Get in touch today and we’ll help guide you through the process.
MATCH is working hard to keep on top of all the latest news and government support so, as always, feel free to get in touch if you have any queries and we’ll be happy to help.
MATCH Accounting Limited