Prepare your business for Making Tax Digital (MTD) for VAT

Making Tax Digital for VAT becomes mandatory for all VAT registered businesses from 1 April 2022

Businesses with a taxable turnover above £85,000 have already been required to follow Making Tax Digital, keeping digital records and filing VAT returns using compatible software since April 2019.

From 1 April 2022, all VAT registered businesses must file digitally through Making Tax Digital from 1 April 2022, regardless of turnover.

We can sign you up to MTD, although you will be responsible for meeting your VAT obligations. Those who do not join Making Tax Digital for VAT may be charged a penalty for failure to do so.

If your business has not signed up to MTD compatible bookkeeping software then please talk to us urgently about how we can help your business comply with the new law.

Submitting your tax return

If you’ve already sent us your information and we have submitted your return to HMRC, thank you! You don’t need to do anything else other than pay any amount due.

If you have not sent us your information (because of Coronavirus) HMRC are now waiving late filing and late payment penalties for one month – giving you extra time, if you need it, to send your information to us so we can complete your tax return and submit it to them.

You will not receive a late filing penalty as long as your tax return is filed online by 28‌‌ ‌February. Interest will be charged from 1‌‌ ‌February on any outstanding liabilities you have not paid. You will not be charged a 5% late payment penalty if you pay your tax or make a Time to Pay arrangement by 1‌‌ ‌April.

If you can’t pay in full by 31 January because of financial difficulties, HMRC may be able to help by arranging a payment plan. Payment plans or payments in full must be in place by midnight on 1‌‌ ‌April to avoid a late payment penalty. If you owe less than £30,000, you may be able to do this online without speaking to them. Go to GOV‌‌.UK and search ‘HMRC payment plan’.

Please contact us if you need assistance