Less than one month left for VAT businesses to be ready for Making Tax Digital filing
VAT-registered businesses must use Making Tax Digital compatible software for their VAT returns from 1 November 2022.
HM Revenue and Customs (HMRC) is reminding businesses that from Tuesday 1 November 2022, they will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns.
By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.
MTD바카라 사이트™s aim is to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow.
More than 1.8 million businesses are already benefitting from the service, and more than 19 million returns have been successfully submitted through MTD-compatible software so far.
In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.
If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.
Richard Fuller MP, Economic Secretary to the Treasury, said:
Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them 바카라 사이트“ growing their business.
I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.
If a business hasn바카라 사이트™t already signed up to MTD or started using compatible software, they must follow these steps now:
- choose MTD-compatible software 바카라 사이트“ a list of software, including free and low-cost options, can be found on 바카라 사이트
- check the permissions in the software 바카라 사이트“ once a business has allowed it to work with MTD, they can file VAT returns easily. Go to 바카라 사이트 to learn how to do this and search 바카라 사이트˜manage permissions for tax software바카라 사이트™
- keep digital records for current and future VAT returns 바카라 사이트“ a business can find out what records need to be kept on 바카라 사이트
- sign up for MTD and file future VAT returns using MTD-compatible software 바카라 사이트“ to find out how to do this, go to 바카라 사이트 and search 바카라 사이트˜record VAT바카라 사이트™
If a business is already exempt from filing VAT returns online or if their business is subject to an insolvency procedure, they will automatically be exempt.
A business can check if they can apply for an exemption from MTD on GOV바카라 사이트Œ바카라 사이트Œ바카라 사이트Œ.UK if it is not reasonable or practical for them to use computers, software or the internet. HMRC will consider each application on a case-by-case basis.
If a business is new and is not yet registered for VAT, they will automatically be signed up for MTD while registering for VAT through HMRC바카라 사이트™s new VAT Registration Service (VRS). Registering via this online service not only means a faster VAT registration and improved security, but also helps new businesses to be fully compliant with MTD requirements from Day 1 바카라 사이트“ although they will still need to get the right software to submit their VAT returns.
A range of accessible help is available online through 바카라 사이트, webinars and videos as well as through HMRC바카라 사이트™s Extra Support Service. Thousands of people have also benefitted from HMRC바카라 사이트™s live webinars, which offer support on filing digitally and explain how it can help businesses. HMRC바카라 사이트¯is continuing to communicate directly with businesses and agents to support them as they transition to MTD for VAT.
Further information
Case studies of businesses already benefitting from MTD for VAT can be found on 바카라 사이트.
Independent research published in February 2022 has shown that using MTD helps businesses reduce errors and is making it faster for businesses바카라 사이트¯to prepare and submit returns. It also found that businesses using fully compatible software were reaping the rewards of바카라 사이트¯MTD바카라 사이트¯through saving time on their tax affairs and improving their financial confidence, by going digital.
HMRC바카라 사이트¯published a report, Evaluating additional tax revenue from Making Tax Digital for바카라 사이트¯VAT, in March 2022 that represents the strongest evidence yet that바카라 사이트¯MTD바카라 사이트¯f´Ç°ù바카라 사이트¯VAT바카라 사이트¯is succeeding in helping to ensure the right amount of tax is collected from businesses by reducing opportunities for error or miscalculation.
Businesses can choose to register themselves for바카라 사이트¯MTD바카라 사이트¯or can ask their agent to do this for them.
Businesses, or an agent on their behalf, must sign up to바카라 사이트¯MTD바카라 사이트¯f´Ç°ù바카라 사이트¯VAT바카라 사이트¯via 바카라 사이트 to fully join바카라 사이트¯MTD. They must have바카라 사이트¯MTD-compatible software before signing up.
Businesses should ensure that they sign up to바카라 사이트¯MTD바카라 사이트¯at least 5 days after their last non-MTD바카라 사이트¯VAT바카라 사이트¯return deadline date, and no less than 7 days before their first바카라 사이트¯MTD바카라 사이트¯VAT바카라 사이트¯return deadline date to avoid paying for their바카라 사이트¯VAT바카라 사이트¯t·É¾±³¦±ð.
Businesses must keep digital records through바카라 사이트¯MTD. This can be done via software. Where a business chooses to use bridging software (a type of recognised바카라 사이트¯MTD-compatible software which extracts information from a business바카라 사이트™s spreadsheet or legacy software and then submits it to바카라 사이트¯HMRC바카라 사이트¯in a way which is compliant with바카라 사이트¯MTD바카라 사이트¯requirements) digital links must be in place to ensure that records are kept digitally as information is transferred between different platforms.
Since April 2022, all businesses should have been keeping digital records from the start of their first MTD accounting period (which will vary for businesses). Further information on when to signup can be found on 바카라 사이트.