HMRC has recently updated its Making Tax Digital (MTD) guidance to reflect that, from 1 April 2022, all businesses registered for VAT in the UK will need to comply with MTD and file their VAT returns through functionally compatible software that links to HMRC’s API platform. Currently, only those businesses whose taxable turnover exceeds £85,000 need to file their VAT returns in this way.
Hannah Mazrae, Director at Saffery Champness says, “This move will force the remainder of the VAT registered population not already filing under MTD to reconsider their VAT filing processes and to prepare to adopt a new process to comply with MTD rules. This includes micro-business with a very small turnover and also businesses whose supplies are outside the scope of UK VAT because of the place of supply.
“Whilst the move will provide certainty across the board, it will mean businesses and agents will have to navigate the rather cumbersome registration and authorisation process in all instances. It is hoped HMRC will recognise some improvements to the registration process would be helpful ahead of these changes and take appropriate action.”
About Saffery Champness LLP
Saffery Champness LLP is a firm of chartered accountants that advises individuals and families, not-for-profit organisations and businesses across a range of sectors. As a member of Nexia International, it is part of a worldwide network of independent accounting and consulting firms.
For over 160 years, the firm’s success has been founded upon providing clients with a genuinely partner-led service and working with them to create bespoke solutions that help them to achieve their personal and business objectives. For more information visit www.saffery.com or see Twitter @Safferys