From 1 April 2022 all VAT registered businesses, with some limited exemptions such as for NHS Trusts, must register for Making Tax Digital.
These changes extend the MTD requirements to smaller businesses following the introduction in April 2019 of Making Tax Digital for those VAT businesses with a taxable turnover above the VAT threshold.
What does this mean?
Under MTD, businesses must keep digital records and use third party software to submit their VAT returns to HMRC. Those who do not already keep their records digitally will need to start doing so to fulfil their VAT obligations.
The term ‘businesses’ for these purposes also includes landlords who have VAT registered properties. Landlords are also required to submit their VAT returns via the Making Tax Digital platform from 1 April 2022.
We are currently in the process of contacting clients we believe are affected by the new regulations but of course please feel free to contact the director or client manager in charge of your affairs to discuss this further. It will take time to set up your new system and make sure everything is working well for you so please ensure there is sufficient time for this before the 1 April 2022 deadline.