Businesses are reminded to take steps to prepare for Making Tax Digital for Value Added Tax (VAT) before it becomes mandatory for all VAT-registered businesses from 1 April this year.
Making Tax Digital is designed to help businesses eliminate common errors and save time managing their tax affairs.
Making Tax Digital for VAT is part of the overall digitalisation of UK Tax.
Since April 2019, businesses with a taxable turnover above £85,000 have already been required to follow MTD, keeping digital records and filing VAT returns using MTD compatible software.
In July 2020, it was announced that all VAT-registered businesses must file digitally through MTD from April 2022, regardless of turnover. HMRC is now reminding businesses below the £85,000 threshold of the steps which they need to take to be ready.
