15 February
By Colin Whitehead
Categories: Services/Corporate/Industry News/Making Tax Digital/Taxation/VAT

MTD for VAT Factsheet – Your questions answered

MTD for VAT Factsheet – Your questions answered

Download our Frequently Asked Questions factsheet as a great starting place to find out more about the next phase of Making Tax Digital (MTD) for VAT and how and when to comply with the new rules from April 2022.

Making Tax Digital (MTD), the new digital tax legislation is currently mandatory for VAT-registered businesses with a taxable turnover above £85,000. 

As outlined in our previous news article content, from 1st April 2022, MTD for VAT obligations will extend to most VAT registered businesses, regardless of turnover.

If you are a business that is not currently VAT registered you must remain vigilant of your VAT taxable turnover in the current accounting year. The £85,000 VAT registration threshold is calculated on a rolling twelve month calculation and so if over a 12 month period your total turnover that is vatable exceeds this amount, you will need register for VAT and therefore also need to comply with the MTD for VAT rules.

Preparing for MTD for VAT

In order to meet the requirements, eligible businesses will need to register for MTD for VAT with HMRC, maintain records digitally and begin submitting VAT returns through compatible software. This means that businesses are no longer able to keep and submit manual VAT records and returns. Instead, HMRC will only accept VAT returns sent using software that supports MTD for VAT.

The use of this technology is mandatory and so it is important that if you and your business are affected by the extension to MTD for VAT from April 2022 now or in the future, you are aware of the changes ahead and understand your obligations.

Download our free factsheet

Download a copy of our Frequently Asked Questions factsheet here, which is a good starting place to find out more about MTD for VAT and how and when to comply with the new rules.

Watch our webinar recording

Our digital team have also recorded an online webinar to help break everything down for you. You can watch the recording at your convenience here.

We are here to help

Adopting digital tools to help run your business can achieve a wealth of benefits, from speeding up processes to managing your business finances more effectively and many of our clients are already utilising cloud accounting software to support their digital journey and MTD compliance.

If you will be affected by the changes to MTD for VAT from April 2022, we’re here ensure you’re ready to comply with the new rules and that you are using MTD compatible software. Our team of digital experts are on hand to offer you practical support and advice on the most appropriate solution for your business now and in the future, if required. Please contact mtdforvat@naylorwintersgill.co.uk and we will be happy to help.

We look forward to hearing from you.