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Are you submitting your VAT returns manually?

3rd March 2022

In April 2019 Making Tax Digital (MTD) came in to force for all businesses that were compulsory registered for VAT.  MTD was one of the most fundamental changes to the administration of the tax system for at least 20 years.  From April 2022 the MTD legislation will apply to all VAT registered businesses and organisations in respect of the records maintained and the method of filing VAT returns.  At a later date MTD will expand further to require additional reporting for other taxes such as income tax.

The essential elements of the MTD legislation are:

As your accountants we will support you through these changes and provide the ongoing services that you need. However, the changes are so fundamental that it will be necessary to review your current record keeping systems and to reconsider what work you decide to do yourself and which activities you wish to include in the service we provide.

 

When does it start?

VAT: As your business is registered for VAT you will be required to keep digital accounting records and to file your VAT returns using MTD compliant software from April 2022 (the first VAT quarter starting on or after 1 April 2022). The current online VAT return will not meet the requirements.

Income Tax (self-employed, partnerships, trusts and landlords who compete self assessment tax returns): MTD is expected to become mandatory for income tax reporting from April 2024.

Corporation Tax (limited companies): The timings for MTD for corporation tax have yet to be confirmed.

What are the exemptions?

What do I need to do now? 

We need to discuss your transition to MTD with you so that you are ready for MTD reporting for VAT by Spring 2022 and also consider the transition for other taxes.

 

Where can I get further information about these changes?

We would be pleased to discuss the options available to you regarding MTD, therefore please contact us by email or telephone the office on 0116 2827000 for more advice and assistance.

 

You can also find out further information following the below links:

https://www.gov.uk/government/publications/making-tax-digital

https://www.icaew.com/technical/tax/making-tax-digital

Registered to carry on audit work in the UK; regulated for a range of investment business activities; and licensed to carry out the reserved legal activity of non-contentious probate in England and Wales by the Institute of Chartered Accountants in England and Wales.  Associate Directors of the firm are not Directors of The Rowleys Partnership Limited (registered no. 06125028) and are not subject to the obligations and responsibilities of Directors within Part 10 of the Companies Act 2006.  Any reference to an individual with the job title “Partner” refers to someone who is a Director of The Rowleys Partnership Limited and also a registered member of Rowleys Group LLP (registered no. OC306056)  A list of Directors and Members are available at Companies House. Details of our audit registration can be viewed at www.auditregister.org.uk and details of our probate registration can be viewed at www.icaew.com/probate, both under reference number C001486455. View our Legal and Privacy Policy.