HMRC have been reminding firms that from April 2021 VAT submissions via accountancy software that does not meet the MTD (Making Tax Digital) formats will not be supported.
HMRC requires all companies to be using the new MTD VAT format by April 2022. In the meantime VAT Returns in the old format can be made manually. While the ideal approach is to address the MTD requirements ahead of the 2022 deadline, we appreciate that it’s been a challenging year for businesses.
This update may be particularly useful to those organisations who are not yet ready to meet MTD requirements, such as organisations that are part of a VAT group or companies under the threshold.
It is worth noting that most of the major software providers are already automatically providing the information in the correct MTD format and so for the majority of companies already registered, or using this software there will be no impact.
If you have any questions or concerns about your VAT return or the Making Tax Digital changes, our team can talk you through the MTD requirements and your options for submission for VAT returns from March 2021.