Making Tax Digital for VAT: Penalty regime starts 1st April 2021
New rules on the Digital Journey and Digital Bookkeeping
Delayed from 1 April 2020, HMRC's Making Tax Digital (MTD) Phase 2 comes into force, on 1 April 2021.
This regulation requires over 1 million UK VAT registered businesses to record and submit their VAT returns digitally with no interruptions, including manual transfers or adjustments.
The new regime also brings with it, for the first time, a new penalty regime for business that fail to keep digital records or maintain a complete digital journey.
Download the 'Making Tax Digital for VAT 2021' guide
This guide explains the new rules on the Digital Journey and Digital Bookkeeping. Plus, the introduction of penalties.
- What MTD is and the new Phase 2 requirements
- The new requirements around digital record-keeping, including what data must be stored digitally and what HMRC classify as a digital link
- The new penalty regime; and
- How businesses can apply for an extension and why you need to start that process now.