Making Tax Digital (MTD) mandatory for all VAT registered businesses
MTD will apply to all VAT registered businesses from 1 April 2022. Therefore, VAT returns will need to be filed through compatible software (direct from your accounting software or via bridging software). In addition to this, digital records must be kept and there must be a digital link between the transactional data and the prepared VAT return. Excel can continue to be used but the cells must be digitally linked. Copy/cut and paste will not be acceptable.
For further information you may wish to watch our Making Tax Digital for VAT Webinar from 2018, although please note that there is no soft-landing period applicable to the 2022 MTD rules. The very latest government guidance can be read here.
Written 14 January 2022.