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Making Tax Digital (MTD) for VAT – changes coming from 1st April 2022

Jessica Maddams profile picture

Jessica Maddams explains how the government's ambitious scheme to get everyone filing returns online will take another leap forward at the start of the next tax year.

HMRC are continuing with their mission to make all businesses compliant with the Making Tax Digital (MTD) programme. MTD for VAT was first introduced in April 2019 for VAT-registered businesses with taxable turnover above the £85,000 threshold. HMRC are extending it to all VAT-registered businesses, regardless of turnover, from April 2022.

This means you will need to be registered and following MTD guidelines from your first VAT return starting on or after 1st April 2022.

What changes will you need to make?

  • You will need to keep your records and accounts digitally in a software program or application on a computer, tablet or smart phone that is capable of maintaining them and storing them in the cloud
  • You must submit VAT returns to HMRC using this compatible software

This may seem quite daunting if you're currently still very paper-based with your business records. But change is not such a bad thing and you may find that once you get over the initial work of changing the way you do things, this new way of keeping records actually has some benefits:

  • Much better control over your business finances
  • Automation of most of the creation and sending of invoices, payment reminders, statements etc
  • 24/7 access to your records and many useful reporting features at the touch of a button
  • Elimination of huge stores of paperwork within your business

There are a few different options available for you in terms of software that is compliant with the new guidelines. Page Kirk would be happy to advise you on the best choice to suit your business needs. We can also provide assistance if you are not feeling confident that you can put new methods into practice. We can work with you to prepare for the changes and develop a plan going forward, supporting you along the way. Simply email us at enquiries@pagekirk.co.uk or call 0115 955 5500 to speak to one of our team.