Making Tax Digital for VAT is coming – are you ready?
In July 2020, it was announced that all VAT-registered businesses must file their returns digitally through Making Tax Digital from 1st April 2022, regardless of turnover. HMRC is now reminding businesses below the £85,000 threshold of the steps which they need to take to be ready. For more details, visit the HMRC website.
Making Tax Digital for VAT is part of the overall digitalisation of UK Tax. In a recent independent study of over 2,000 businesses, 69% reported experiencing at least one benefit from Making Tax Digital. These included preparing and submitting returns faster and increased confidence that they were getting tax right.
Making Tax Digital is designed to help businesses eliminate common errors and save time managing their tax affairs.
Below, Josh talks about Making Tax Digital. All VAT registered businesses must file their first VAT return for the VAT quarter starting on or after 1 April using MTD for VAT software.