MTD For VAT
The deadline for all VAT records to be recorded and submitted digitally is fast approaching.
From April 2022, the requirements to keep digital VAT records and send returns using MTD-compatible software will apply to all VAT-registered businesses.
This means that even businesses that are below the VAT threshold and voluntarily VAT-registered must meet MTD rules. This stage is the next part of HMRC’s 10-year strategy for the tax system.
“to improve its resilience, effectiveness and support for taxpayers”
Many Still Need To Opt-In
According to HMRC’s latest figures in September 2021, only 30% of those VAT registered businesses with turnover below the registration threshold had joined MTD. This means that a large number of businesses are still to put digital systems in place.
MTD For Self Assessment
MTD for Income Tax Self Assessment was originally planned to come into force in April next year (2023). However, due to various factors (including the pandemic), it will now apply from April 2024. These rules will apply to unincorporated businesses and landlords with total business or property income above £10,000pa.
In order to comply with MTD rules, you will need to keep and submit your records digitally. If you’ve not started this process it’s important that you choose compatible accounting software as soon as possible. In our experience, it takes around three months to acquire, implement and start to use your new software.
We Can Help
At KA Farr & Co. we are Sage Partners, which means we can offer our customers Sage products at a discounted rate.
But you don’t need to use Sage, we offer support and guidance for all MTD compatible software.
Many of these software providers offer free trial periods, so you can ‘try before you buy’.
Get In Touch
If you need help or advice with MTD for your business you can give us a call on 01704 211434 or send us an email here.
We will help you to make sense of making tax digital, ensuring full compliance, avoiding any nasty fines or penalties.