Businesses need to take steps now, before it becomes mandatory for all VAT-registered businesses from 1 April this year. This new law will allow you to eliminate common errors and save time managing your tax affairs with Making Tax Digital - but only if they prepare in advance!
Making Tax Digital for VAT is coming – are you ready? HMRC urges VAT-registered businesses to sign up for Making Tax Digital for VAT before 1 April 2022.
Businesses are reminded to take steps to prepare for Making Tax Digital for Value Added Tax (VAT) before it becomes mandatory for all VAT-registered businesses from 1 April this year.
Since April 2019, businesses with a taxable turnover above £85,000 have already been required to follow Making Tax Digital, keeping digital records, and filing VAT returns using Making Tax Digital compatible software. In July 2020, it was announced that all VAT-registered businesses must file digitally through Making Tax Digital from 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. To sign up to Making Tax Digital VAT, businesses, or an agent on a businesses’ behalf, you need to: - Visit GOV.UK and choose Making Tax Digital-compatible software - Keep digital records starting from 1 April 2022 or the beginning of their VAT period - Sign up and submit their VAT Return through Making Tax Digital If businesses have not yet signed up to Making Tax Digital for VAT, they should do so now to ensure they are ready in time for the April 2022 deadline.
Businesses can find help and support on how to sign up for Making Tax Digital on GOV.UK. Accountants can sign up on behalf of a business, although businesses remain responsible for meeting their VAT obligations. Those who do not join may be charged a penalty for failure to do so. For businesses who need help and support on signing up for Making Tax Digital, talk to us! We can help you with the process!
It is a fact that some businesses will experience upfront costs in joining Making Tax Digital. There are a range of compatible software products available for Making Tax Digital for VAT, allowing businesses to choose which tools they use to run their business and tax affairs. We will ensure that our clients will enjoy a swift transition, as we are perfectly prepared for Making Tax Digital. Some VAT-registered businesses may be eligible for an exemption from Making Tax Digital if it is not reasonable or practicable for them to use digital tools for their tax. If a business has previously been granted an exemption for VAT online filing, this will carry over to Making Tax
Digital VAT requirements. Information on how to apply for an exemption is available on GOV.UK.
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