Making Tax Digital now mandatory for VAT-registered businesses

MTD became mandatory for all VAT registered businesses on the 1 April 2022.

The government states that MTD helps taxpayers get their tax returns right by reducing common mistakes as well as saving time managing their tax affairs and is a key part of the overall digitalisation of UK tax.

Evidence shows MTD is succeeding in its aims of reducing errors, while also making it faster to prepare and submit returns and boosting productivity for businesses. New research, conducted by HMRC and peer reviewed by independent academics, shows MTD is likely to have generated increased revenue for the Treasury, through reducing errors in both 2019 and 2020.

Nearly 1.6 million taxpayers had joined MTD for VAT as of December 2021 with more than 11 million returns successfully submitted.

Need help with VAT?

VAT-registered businesses that have not yet signed up to MTD for VAT should do so now. All VAT-registered businesses must use MTD for VAT for their first VAT return period that starts on or after 1 April 2022. For any business concerned about this, we can help to choose the software that is right for you, whether that is one of the simple free options available, or a more advanced product for those with more complex affairs. Our VAT specialists are on hand to provide advice on any aspect of VAT.

Please contact us about MTD – we are here to help!

 

Other posts you might like:

Cashflow Management Strategies

Good cashflow management helps speed up the money coming into your business by pursuing overdue monies and managing outgoings. Technology can boost the process with automation and digitisation helping to support your business.

read more

Charity Newsletter Spring 2022

Welcome to a bumper edition of our charity newsletter featuring many issues that affect the third sector including key challenges post Covid, the war in Ukraine and fraud awareness.

read more