Finance Article - April/May 22
Your Questions Answered by TaxAssist Accountants
When does Making Tax Digital for VAT come in for my business?
I am registered for VAT but trading below the current VAT threshold, when do I need to be registered for Making Tax Digital for VAT by?
Many businesses are already registered for Making Tax Digital for VAT and have been since April 2019. These businesses are already filing their VAT returns through compatible software and keeping some of their records digitally.
From April 2022, unless a business is exempt from registering for Making Tax Digital, all businesses, even those that are VAT registered and trading below the current VAT threshold of £85,000 will now need to be registered for Making Tax Digital for VAT and going forwards file their VAT returns to HMRC using compatible software.
The first VAT return that commences after April 2022 will need to be filed through compatible software.
Details of how businesses need to keep their records can be found at www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat.
If you would like any advice or assistance in this area, please contact us to arrange a free initial consultation.
Information supplied by Cheryl Hopkins, Chartered Certified Accountant, TaxAssist Accountants. Advice shared in this article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayers’ circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take, action, as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.