Businesses urged to sign up for Making Tax Digital for VAT before 1 April 2022
HM Revenue & Customs (HMRC), the UK tax authority, has issued a press release reminding businesses to take steps to prepare for Making Tax Digital for VAT (MTDfV) ahead of the April 1, 2022 deadline when it becomes mandatory for all VAT registered businesses.
HMRC has confirmed that:
- Nearly 1.6 million taxpayers have signed up for MTD as of December 2021
- More than 11 million VAT returns have been successfully submitted under MTD
- Around a third of VAT registered businesses with taxable turnover below £85,000 have voluntarily signed up to MTD ahead of April 2022
The press release also points to a recent independent study of over 2,000 businesses which highlighted that:
- 69% of businesses reported experiencing at least one benefit from MTD. These included preparing and submitting returns faster and increased confidence that they were getting tax right.
- 67% of businesses also felt MTD had reduced the potential for mistakes in at least one aspect of the record keeping, preparing and submitting returns process.
As a reminder, with effect on April 1, 2022, Making Tax Digital (MTD) for VAT will be extended to all UK VAT registered businesses – regardless of their size and whether they are registered for VAT purely on a voluntary basis. This equally applies to foreign businesses which are registered for UK VAT.
Speak to one of our experts today about Making Tax Digital obligations.
Help ensure your business is MTD compliant
From 1 April 2022, all VAT registered businesses (including those below the previous £85,000 threshold) will have to comply with the UK HMRC's MTD requirements.
Avalara MTD Cloud is an online, UK VAT filing service that is HMRC-recognised and fully compliant with Phase 2 of the Making Tax Digital for VAT rules.
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