Digitalisation reaches another rollout milestone
HMRC’s Making Tax Digital (MTD) project entered another key implementation phase on 1 April 2022, bringing more traders within the requirements of MTD for VAT. How will VAT-registered businesses be affected by this?
Many VAT-registered businesses have been required to comply with the MTD requirements in respect of VAT returns and digital record keeping since April 2019. However, this was restricted to businesses that had taxable turnover in excess of the compulsory registration threshold, i.e. voluntarily registered businesses haven’t had to worry about MTD. Until now.
For VAT periods starting on or after 1 April 2022, all VAT-registered businesses must be MTD-compliant. The detailed requirements are set out in VAT Notice 700/22, but broadly require the use of approved software so that information moves from the initial manual input through to HMRC automatically. Affected businesses should be prepared by now, but if not there may still be time to get things in place. For example, if a business has a VAT quarter ended 30 April 2022, it doesn’t need to start using MTD until 1 May, with the first return submitted under MTD being the quarter ended 31 July 2022. It's essential to act without further delay, as penalties can be applied for failure to comply.
Related Topics
-
HMRC launches new R&D advance assurance process
HMRC has introduced a new advance assurance process for research and development (R&D) tax relief claims, aimed at giving eligible companies greater certainty before submitting a claim. What does the new process involve?
-
Dodging tax and NI on 2025/26 benefits
If you had taxable benefits in kind in 2025/26 then you’ll have to pay income tax on the value. Your company also has to pay 15% NI. Now the tax year has passed is there any way you can reduce or eliminate this tax liability?
-
Selling spare items to your company
You’re short of cash but if you use the traditional methods to take more money out of your company you’ll pay higher rate taxes. Is there another way to extract profits without paying income tax or NI?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.