Keeping digital records from 1st April 2022
From the beginning of April 2020, all UK VAT-registered businesses will need to keep digital records of all transactions, and then submit VAT returns electronic using compatible software.
Whereas many businesses have already started using Making Tax Digital (MTD), the new deadline means that all businesses of any size that are VAT registered will need to comply.
Signing Up to MTD by the next VAT period due
The new electronic service replaces the ‘manual’ VAT return for businesses on their next submission after the 1st April start date, which remains at the same quarterly interval. So (for example) if the business’s current VAT period is February to April, then this can be completed in the usual way when due in May. But the following VAT period of May to July will require a digital submission in August (and thereafter). Signing up to MTD needs to be made at least 7 days before the date the first MTD return is due. It’s important however not to sign up less than 5 days after the last non-MTD return, to avoid duplication of payments.
Signing up is accomplished via the MTD GOV.UK website, requiring a Government Gateway ID with business and VAT registration information.
Obtaining and using compatible software
Various providers of accounting software are available to both record digital transactions and make the electronic VAT submissions. This also includes using spreadsheets, though in that case bridging software will be needed to make the submission.
A top tip for NatWest Bank business customers is that they will provide the MTB compliant accounting software FreeAgent at no cost.
Assisting with your business requirements
@YellowsBestLtd would be interested to receive feedback on your transition to MTD and any other business transformation challenges you are facing. If appropriate, there may be areas of your business development or operations that we can support with consultancy services e.g. sales and marketing assistance. Please get in touch to discuss how we can be of help.
We look forward to hearing from you!