From 1 November 2022, all VAT-registered businesses must use Making Tax Digital (MTD) compatible software to keep VAT records and file their returns.
This means businesses will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns – unless HMRC has agreed they are exempt from MTD.
Businesses may already be signed up to the MTD for VAT scheme, however it is important that they also check that their software is MTD compatible before filing their next return.
More than 1.8 million businesses are already benefitting from the MTD service, and more than 19 million returns have been successfully submitted through MTD compatible software to date.
If returns are not filed through MTD compatible software then a penalty may be issued.
For more information on choosing your compatible software package and making the switch to MTD for VAT submissions within your chosen software, download our factsheet below.