Since April 2019, all VAT registered businesses with a taxable turnover above the £85,000 VAT registration threshold have needed to keep their accounting records digitally and submit their VAT Returns via MTD-compliant software. Those below the threshold were exempt from these requirements.
From April 2022 all VAT registered businesses, yet to register for MTD for VAT, will be required to comply with these rules and submit their returns digitally. This change will come into effect for VAT periods commencing on or after 1 April 2022.
Do I need to register?
You will need to sign up to MTD for VAT prior to submitting your first return under the new system. Details of “How” and “When” to sign up are available here.
What does Digital Record keeping mean?
Your accounting records will now have to be kept digitally within functional compatible software (which includes spreadsheets) that connect to HMRC systems. More information on the digital records you must keep and what constitutes MTD-compliant software can be found in HMRC VAT Notice 700/22
What do I need to do?
If you’re not already using a compliant digital software solution, now is the time to look at your options.
Embracing digital might sound like a time-consuming and expensive process, but for most businesses, the transition is not as complex or costly as it seems.
We’ve been helping businesses of all sizes prepare for MTD for some time now and have a range of solutions to suit your business needs., This could involve he use of a cloud based accounting package like QuickBooks, Xero or Sage or one of our Excel solutions which uses a bridging software to submit your VAT return.
If you run older non-MTD compliant software we can also offer a solution, with the help of our bringing software, which will allow you to continue using your existing accounting package.
Get in touch
We would encourage all businesses to review their MTD options early so that they can be implementing and recording transactions digitally well in time for their first MTD for VAT submission. We’re here to support you through these changes; so please contact us to discuss the options available to you.