Making Tax Digital
Making Tax Digital (MTD) is part of the government’s plan to make it easier for businesses and individuals to get their taxes right and stay on top of their affairs.
Making Tax Digital for VAT
From 1 April 2022 all VAT registered businesses are required to follow the MTD rules. This means that they must keep digital accounting records and use approved software to submit their VAT returns to HM Revenue and Customs.
MTD for VAT has been in place since 2019 however not all businesses needed to adhere. From 1 April 2022 all VAT registered businesses including self-employed and landlords will have to comply with the rules regardless of their turnover.
A select few businesses may qualify for exemption if it is not reasonable or practical for them to use computers. To apply you can write or call HMRC and will need to provide the following information:
- Business name and address
- VAT registration number
- Details as to how you currently file your VAT returns
- The reason you think you might be exempt
Businesses can either sign themselves up for MTD or use their agent. We have helped many businesses register for MTD however we appreciate that you may wish to do so yourself. Here is a link to help you find out more about MTD for VAT and when to start using it https://www.gov.uk/guidance/when-to-start-using-making-tax-digital-for-vat-if-youve-not-before
If you just want to get straight to the signing up process follow this link which explains what information you need and what you need to do https://www.gov.uk/guidance/when-to-start-using-making-tax-digital-for-vat-if-youve-not-before
Alternatively speak to your local TFMC office and we will be glad to help you get signed up. Contact us toady.