There is now just over six months before Making Tax Digital (MTD) for VAT is mandatory for all VAT registered businesses.
Until now, those who were voluntarily VAT registered (ie those with taxable supplies of below £85,000) have not needed to follow MTD requirements.
MTD will become compulsory for VAT from and including the first VAT return period that starts after 1 April 2022.
Under MTD you need to keep your records digitally (for VAT only) as well as provide your VAT return information to HMRC through MTD compatible software.
I would strongly recommend that you start planning for this change now. This will give you time to choose the right accounting software for your business as well as arranging any software training that might be required.
Some businesses may decide they would rather de-register from VAT to avoid MTD requirements. Before doing this, do get advice to ensure there are no unwanted VAT clawbacks.
If you have any queries regarding the above, do contact your normal M+A Partners contact, speak to me on 01953 452077 or email email@example.com