From April 2022 all VAT registered businesses must file VAT returns digitally through software under the Making Tax Digital (MTD) rules. Previously, only VAT registered businesses with income above £85,000 had to file returns under MTD.
Businesses need to have signed up to MTD for their first VAT period starting on or after 1 April 2022, so for quarterly VAT returns this would generally mean the quarter ended 30 June 2022, 31 July 2022 or 31 August 2022.
Businesses need to have signed up at least 5 days after their last (non-MTD) VAT return deadline date, and no less than 7 days before the first MTD VAT return deadline date. Failure to follow these rules may result in VAT being paid twice for businesses paying by Direct Debit.
Businesses that do not sign up will be charged a penalty.
Under MTD rules, businesses must keep accounting records digitally through software. The system has been introduced to reduce errors on VAT returns.
Ellis & Co are accredited with the main accounting software packages such as Quickbooks, Xero, FreeAgent and Sage Online, and have an in-house software expert who can assist businesses with the switch.
For more information call the team in Chester on 01244 343504 or email firstname.lastname@example.org.