Stay Ahead of the Deadline: Is Your Business Ready for Making Tax Digital for VAT?
HMRC is reminding businesses that they will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns from the November 1st deadline, as part of the transition to Making Tax Digital.
By law, all VAT-registered businesses must now sign up for Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.
According to HMRC, more than 1.8 million businesses are already using the MTD for VAT service. Over 19 million returns have been successfully submitted through MTD-compatible software so far, the tax authority adds.
From November, businesses that 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 if their software is MTD compatible and sign up for MTD before filing their next return.
Transition to Making Tax Digital for VAT
As certified Xero partners, Atek is well-prepared to support you in navigating the requirements of Making Tax Digital. Being a proactive accounting practice, we have proactively adopted the MTD for VAT approach from the outset. Our clients can have confidence that their businesses are already compliant, ensuring peace of mind and security.
If you need help transitioning to Making Tax Digital for VAT, please get in touch.
Explore the latest updates at GOV.UK
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