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If you are VAT registered, and your turnover is more than £85,000, you are now required to file VAT returns using the new MTD platforms. If affected, make sure you are using compatible software.
Ensure that you can manage the reporting process effectively, and without increasing your tax or NIC liabilities beyond the amount that you are required by law to pay.
MTD is mandatory for all VAT-registered businesses as of 1st April 2022. Businesses affected by MTD filing for VAT purposes now need to upload their VAT returns directly from authorised accounts software, manually submitted VAT returns are no longer accepted by HMRC.
Most suppliers of software now have links to HMRC’s digital accounts system. This is a major change, probably the most impactful, since self-assessment was introduced over twenty years ago.
Once MTD is fully implemented – no earlier than April 2026 – business and rental profits are to be uploaded on a quarterly basis directly from authorised accounting software used by the business owners or their advisors.
Without a doubt, HMRC’s drive to digitalise tax makes sense. Why request an annual return of taxable income when all the data can be pushed to a centralised Account (PTA) in real time?
Keep an eye on our updates on this topic. We are being drawn into a digital net for tax purposes and there does seem to be some inevitability about the process.
If you are completely mystified by MTD, please call to discuss how we can help you and deal with the ongoing filing requirements.