Sorry I didn’t – the story so far with MTD for VAT

Since April 2019 businesses with income higher than the VAT registration threshold have been required to file their VAT returns using  Making Tax Digital (MTD) for VAT procedures.

Uptake was initially patchy, perhaps because the sign up process itself is not exactly straightforward, but recent figures issued by HMRC indicate that 89% of businesses required to make the change have done so.

Presumably, in defiance of the MTD regulations, the other 11% have continued to file under the old system where you go online and fill in the boxes manually.

If you are one of the 11% who haven’t signed up, you may well have received a letter from HMRC with the bad news that they have turned off your ability to use the old system, so you now need to get your act together.

In truth, once you are through the rather awkward set up procedures, it’s an easy system to get used to, particularly if you are using modern accounting software.

Something else to bear in mind is that from April 2022 ALL VAT registered businesses must use MTD for VAT. One expects that the old system will be turned off altogether as soon as it is practical.

If the whole idea of MTD for VAT puts you in a cold sweat, please get in touch and we’ll take a look at the possibility of assisting you.