From the beginning of November VAT-registered companies will no longer be able to use their existing VAT online account to submit VAT returns.
That’s the date that, by law, all VAT-registered businesses must sign up to Making Tax Digital and use compatible software to keep VAT records and file returns.
MTD’s aim is to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow.
More than 1.8 million businesses are already using the service, and more than 19 million returns have so far been submitted through MTD-compatible software.
In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.
If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.
Richard Fuller MP, Economic Secretary to the Treasury, said: “Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them – growing their business. I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.”
