HMRC have announced that the existing Making Tax Digital (MTD) online portal closes on 31 October 2022.
What businesses need to do now (or they could face a penalty)
If businesses haven not signed up to MTD and started using compatible software already, they must follow these steps now:
Step 1
Choose suitable MTD-compatible software they can find a list of software on GOV.UK.
Step 2
Check the permissions in their software – once they have allowed it to work with MTD, they can file their VAT returns easily. Go to GOV.UK and search ‘manage permissions for tax software’ for information on how businesses should do this.
Step 3
Keep digital records for their current and future VAT returns – a business can find out what records they need to keep on GOV.UK.
Step 4
Sign up for MTD and file their future VAT returns using MTD-compatible software – to find out how to do this, go to GOV.UK and search ‘record VAT’.
Businesses who file quarterly or monthly VAT returns must complete these steps in order to file their returns due after 1 November.
Exemption from MTD for VAT
There are exemptions from MTD and they my be applied for here.