We would like to inform you about the new government initiative, Making Tax Digital (MTD), which requires businesses to keep digital records and submit tax returns online using compatible software. MTD is part of the government’s plan to make tax administration more effective, efficient, and easier for taxpayers.
From 1 April 2022, all VAT-registered businesses with a taxable turnover above the VAT registration threshold of £85,000 will be required to keep digital records and submit their VAT returns using MTD-compatible software.
To comply with the new regulations, you will need to ensure that you have digital records of all your business transactions, including sales, purchases, and expenses, and use MTD-compatible software to file your VAT returns. This means that you will no longer be able to use HMRC’s online VAT portal to submit your VAT returns.
If you are not currently using digital record-keeping software, we recommend that you start researching and investing in a compatible solution as soon as possible. Our team can provide advice and guidance on the best software options for your business.
We understand that this change may be daunting for some of our clients, but we are here to support you through the transition to MTD. We will ensure that you have all the information and resources you need to comply with the new regulations and avoid any penalties for non-compliance.
If you have any questions or concerns about Making Tax Digital and how it will affect your business, please do not hesitate to contact us.