HMRC have confirmed that on Tuesday 1 November 2022, VAT registered businesses will no longer be able to file their quarterly or monthly VAT returns via their online VAT account.
This means that VAT registered businesses must have compatible software in place to maintain VAT records and file their VAT returns within the Making Tax Digital for VAT scheme (MTD for VAT).
In light of this we have prepared a list of FAQs and answers to assist if your business has yet to register for MTD for VAT.
Which businesses are in the scope of MTD for VAT?
MTD for VAT was extended to all VAT registered businesses from 1 April 2022, subject to very limited exceptions.
I already file my VAT return online, am I registered with the MTD for VAT scheme?
Previously having filed your VAT return online does not mean that your business is registered for the new MTD service, you are advised to do so ASAP to avoid any potential penalties and interest.
I haven’t registered my business yet, what do I need to do?
What software do I need for MTD for VAT?
You can find the most up to date list of compatible software providers here.
Is there any financial support available for my business to purchase MTD for VAT software?
Subject to qualifying criteria, businesses may be able to access the ‘Help to Grow: Digital’ scheme, which provides businesses with up to £5,000 towards the purchase of either digital accounting software, Customer Relationship Management software or e-Commerce software. You can read more about the scheme here.
What happens if I don’t file my VAT return via compatible software?
Whilst the portal will remain open for certain exempt businesses, improper use could result in businesses receiving a financial penalty and interest from January 2023.
You can read our previous articles on MTD for VAT Making Tax Digital | Mitchell Charlesworth or you may wish to view our most recent webinar on the topic: