With less than a month to go HMRC are reminding businesses that from Tuesday 1 November 2022, they will no longer be able to use their existing VAT online account to submit VAT returns, unless HMRC has agreed they are exempt from MTD.

If you haven’t already done so, get online and sign up for Making Tax Digital VAT (MTD VAT). Here’s what you need to do:

  1. Software – choose MTD-compatible software, a list of software, including free and low-cost options, can be found on GOV.UK
  2. Permissions – once your accounting software has connect to work with MTD, you are ready to submit your VAT return digitally
  3. Record Keeping – keep digital records for all current & future VAT returns

Exemption
If a business is already exempt from filing VAT returns online or if their business is subject to an insolvency procedure, they will automatically be exempt.

A business can check if they can apply for an exemption from MTD on GOV‌‌‌.UK if it is not reasonable or practical for them to use computers, software or the internet. HMRC will consider each application on a case-by-case basis.

All new VAT registration applications will automatically be signed up for MTD while registering for VAT through HMRC’s new VAT Registration Service (VRS).

The Benefits to business owners
The benefits of MTD VAT are:

  • Faster VAT registration process
  • Improves security
  • Improves accuracy
  • Your business is compliant
  • Less administration freeing up time to growing their business.

A range of accessible help is available online through GOV.UK, webinars and videos as well as through HMRC’s Extra Support Service. Thousands of people have also benefitted from HMRC’s live webinars, which offer support on filing digitally and explain how it can help businesses. HMRC is continuing to communicate directly with businesses and agents to support them as they transition to MTD for VAT.

If you require any support to get MTD ready and bring your business in line with HMRC requirements, contact balancedup today!