From Monday 15 May 2023, unless you are already using Making Tax Digital (MTD) compatible software, you will no longer be able to use your existing VAT online account to file manual VAT returns. That is because by law, all VAT-registered businesses must now use Making Tax Digital (MTD) compatible software to keep their VAT records and file their VAT returns.
What businesses need to do now to avoid a penalty
- Step 1. Choose MTD-compatible software that’s right for your business – talk to us immediately!
- Step 2. Check the software permissions to allow it to work with MTD. Go to GOV.UK and search ‘manage permissions for tax software’ for information on how to do this.
- Step 3. Keep digital records for current and future VAT returns – more information about what records must be kept digitally is on GOV.UK.
- Step 4. File your future VAT returns on time using MTD-compatible software. You can find out how to submit your VAT returns on GOV.UK.
If you have any questions regarding VAT and the new MTD regime do please get in touch with your local UHY Ross Brooke office in Abingdon, Hungerford, Newbury or Swindon.
