Comply With Making Tax Digital (MTD) VAT Returns in 2022

The April 2022 deadline for Making Tax Digital for VAT is coming soon. 

Making Tax Digital (MTD) for VAT was originally rolled out for businesses with a turnover of more than £85,000 but, as of April 2022, the new rules will apply to all businesses registered for VAT. 

This means that, from April 2022, you will be required to keep and update digitally linked records using functional compatible software.

Functional Compatible Software

MTD for VAT requires that all businesses use ‘functional compatible software’. In simple terms, your clients’ software needs to be able to communicate directly with HMRC’s computers.

This is because MTD requires businesses to file VAT returns in digital form. This aims to reduce the chance of human error by removing the need for your clients to manually enter VAT data into HMRC’s systems. 

Xero or QuickBooks Online software can be used as a cheap and effective bridging software solution to file VAT returns in digital form. 

What Action To Take?

Again, the April 2022 deadline is set in stone, and non-compliance will lead to potential costly penalty fees.

As a chartered accountant, and a certified user for both Xero and QuickBooks, I can review your existing system and advise on the best solution for your business and ensure you are fully compliant with HMRC.

For a free consultation, please call on 07964 103460 or send an email to tony@baylissaccountancyservices.co.uk

A comprehensive guide of the accountancy services I can provide can be found on my website www.baylissaccountancyservices.co.uk