VATLive > Blog > United Kingdom > UK MTD for businesses below VAT registration threshold April 2021

UK MTD for businesses below VAT registration threshold April 2022

  • Jul 21, 2020 | Richard Asquith

The UK Finance Bill 2020-21 issued today plans to extend mandatory Making Tax Digital requirement to around 1 million businesses below the VAT registration threshold but which have voluntarily VAT registered. Since 1 April 2019, businesses above the threshold have been required to file via HMRC’s API MTD portal. The current UK VAT threshold is £85,000 turnover per annum.

A plan to mandate digital record keeping and links was delays from 1 April 2020 to 1 April 2021 due to the COVID crisis.

"The Government will introduce legislation in Finance Bill 2020/21 to extend Making Tax Digital for VAT to all businesses below the VAT threshold from April 2022, to ensure every VAT-registered business takes the step to move to a modern, digital tax service."


Need help with your UK VAT compliance?



Researching UK VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

Latest British news


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
Inspire Virtual 2021

AVALARA'S ANNUAL
INDIRECT TAX SUMMIT

20-21 OCT 2021