Beware! Making Tax Digital Penalties…
When Making Tax Digital (MTD) was launched, it brought with it the requirement for VAT registered businesses to submit their VAT Returns using MTD-compatible software. There was however a ‘soft landing’ period, within which those businesses would not face penalties if they submitted using their old VAT online account.
That ‘soft landing’ period is now coming to an end, and the old method of submission will no longer be possible for monthly or quarterly Returns from 1st November 2022. Annual Returns can still be made using the VAT Online account without penalty until 15th May 2023.
HMRC have confirmed that if Returns are not submitted using MTD from this point, penalties will apply. For a non-electronic submission, the penalty can be up to £400. A new points-based penalty regime has been proposed and will also apply to VAT.
If you’re VAT Registered and are still using the old VAT online account to make your submissions, now is the time to make the move to MTD. If you need help to do so, please get in touch. We’ve moved all of our clients over, and supported them through the process which for some included getting to grips with new accounting software; we can help ensure the move isn’t as daunting as you may expect!
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