Are you ready for the next phase of MTD for VAT?

The next phase of MTD will come into effect from 1st November 2022. You will not be able to use your existing VAT online account to file your quarterly or monthly VAT returns from this date.

If this applies to your business, you will need to make sure your software is compatible with MTD and that you are prepared. You will need to ensure that you are keeping digital copies of all your records and your VAT return will need to be submitted to HMRC via the appropriate software, otherwise you may have to pay a penalty (if you file annual VAT returns, you will still be able to use your online account until 15th May 2023)

Even if you already use MTD compatible software to keep your records and file your VAT returns online, don’t forget you must sign up to MTD before you file your next return.

What action do I need to take?

HMRC recommends that businesses that this change may affect, should start using MTD now. You must sign up to MTD before you file your next return even if you already use MTD compatible software to keep your records and file your VAT returns online. If you are currently exempt from filing VAT returns online or if your business is subject to an insolvency procedure, you are automatically exempt.  

You need to be aware that not all digital software is MTD compliant. Before investing in software you can check its capability here.

Luckily, if you are currently using Sage 50 Cloud or Sage Business Cloud software then you are already using compatible software.  If you’re needing to make the step towards your new compatible software, or you just need a helping hand with your existing software in preparation for MTD then please get in touch. We have software demos at the ready and training packages to guide you through the process.

13.09.2022

“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

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