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MTD Mandatory for VAT-reg 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 central 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.
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.
Please contact us about MTD – we are here to help!
Please note that this is correct as of the 4th April 2022.
DISCLAIMER - PLEASE NOTE: The ideas shared with you in this blog are intended to inform rather than advise. Tax payers circumstances do vary and if you feel that tax strategies we have outlined may be beneficial, it is important that you contact us before implementation. If you do take action as a result of reading this blog, before receiving our written endorsement, we will accept no responsibility.