As you may be aware HMRC have been changing the way as to how businesses have to keep their VAT records and the method that they submit their VAT returns. This is known as ‘Making Tax Digital (MTD). From 1 April 2019 this has been mandatory if you are VAT registered and have annual taxable turnover of more than £85,000. However, for periods commencing 1 April 2022 this will become mandatory for all remaining VAT registered businesses where annual taxable turnover is below £85,000.
HMRC will require the following:
- Records to be kept in a digital format.
- Software must be used to submit the VAT return digitally (the old HMRC submission website will not be available once you are in the MTD system).
If you have not yet signed up to MTD you may receive a letter from HMRC in the next few weeks. If we believe this change affects you, we will also be writing to you with more information.
In the meantime, if you have any queries regarding MTD please speak to your usual contact in the office.