Digitalisation reaches another rollout milestone
HMRC’s Making Tax Digital (MTD) project entered another key implementation phase on 1 April 2022, bringing more traders within the requirements of MTD for VAT. How will VAT-registered businesses be affected by this?
Many VAT-registered businesses have been required to comply with the MTD requirements in respect of VAT returns and digital record keeping since April 2019. However, this was restricted to businesses that had taxable turnover in excess of the compulsory registration threshold, i.e. voluntarily registered businesses haven’t had to worry about MTD. Until now.
For VAT periods starting on or after 1 April 2022, all VAT-registered businesses must be MTD-compliant. The detailed requirements are set out in VAT Notice 700/22, but broadly require the use of approved software so that information moves from the initial manual input through to HMRC automatically. Affected businesses should be prepared by now, but if not there may still be time to get things in place. For example, if a business has a VAT quarter ended 30 April 2022, it doesn’t need to start using MTD until 1 May, with the first return submitted under MTD being the quarter ended 31 July 2022. It's essential to act without further delay, as penalties can be applied for failure to comply.
Related Topics
-
Founders' relief: a closer look
The Budget's new Founders' Relief sounds remarkably generous, offering a 10% capital gains tax rate on up to £10 million of gains from selling shares from April 2027. However, a closer look at the proposed qualifying conditions suggests that relatively few business owners will benefit. Why might the relief be so difficult to claim?
-
MONTHLY FOCUS: 2026 BUDGET SPECIAL
Budget 2026 contains a mixture of tax rises, new reliefs and changes to the way businesses and individuals will be taxed from 2027 onwards. Savings and property income will face higher rates, the lifetime limit for Business Asset Disposal Relief will fall, a new founders' relief is planned and several allowances and business incentives are changing. Which measures matter most, and is there anything you should do before they take effect?
-
Autumn Budget 2026 – what are the key tax announcements?
The Chancellor delivered the Autumn Budget on 28 October, announcing a mixture of tax increases, new reliefs and changes to the way tax is administered. Although the headline rates of income tax, National Insurance (NI) and VAT remain unchanged, there are some significant changes affecting business owners, landlords and private individuals. What are the main announcements?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.