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.