Making Tax Digital for VAT reminder

Just a Making Tax Digital for VAT reminder that from Tuesday the 1st of November 2022, you will no longer be able to use your existing VAT online account to file your quarterly or monthly VAT returns, if you currently do so.

Businesses that file annual VAT returns will still be able to use their VAT online account until the 15th of May 2023.

By law, VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use MTD-compatible software to keep their VAT records and file their VAT returns.

If you do not sign up for MTD and file your VAT returns through MTD-compatible software, you may have to pay a penalty. The best way for businesses to avoid penalties is to start using MTD now.

Even if you already use MTD-compatible software to keep your records and file your VAT returns online, don’t forget you must sign up to MTD before you file your next return if you have not already done so.

What businesses need to do now

If you haven’t signed up to MTD and started using compatible software already, you must follow these steps now:

Step 1. Choose MTD-compatible software that’s right for you – you can find a list of software, including free options, on GOV.UK.
Step 2. Check the permissions in your software – once you’ve allowed it to work with MTD, they can file their return easily. Go to GOV.UK and search ‘manage permissions for tax software’ for information on how you should do this.
Step 3. Keep digital records for your current and future VAT returns – you can find out what records you need to keep on GOV.UK.
Step 4. Sign up for MTD and file your future VAT returns using your MTD-compatible software – to find out how to do this, go to GOV.UK and search ‘record VAT’.

Those who file quarterly or monthly VAT returns must complete these steps in order to file their returns due after 1 November 2022.

Help and support avaliable

Businesses may be able to get a discount on software through the UK Government’s Help to Grow: Digital scheme, which offers 50% off compatible digital accounting software.

Help and support for Making Tax Digital is available on GOV.UK, where you can find useful videos, register for live webinars, and see the latest guidance and updates on MTD for VAT.