Making Tax Digital For VAT Extended

From April 2022, all VAT registered businesses will be expected to register for Making Tax Digital for VAT regardless of whether you are over the £85,000 threshold or not. According to Xero, over one million VAT registered businesses currently fall into this category ...

Do you run one of these businesses? So, what does this mean to you as a business owner? Being registered for Making Tax Digital for VAT means you must, from April 2022, retain digital records and submit your VAT returns to HMRC.

"You must use 'functional compatible software' such as Xero or Sage!"

If you are already using accounting software that is MTD compatible then you are halfway there, and you will just need to inform HMRC that you are ready to submit MTD VAT returns. There is no point in waiting for April 2022, you can start now.

Even if you use an Excel spreadsheet then there are bridging options that mean your figures can be submitted compliantly, but you must not use copy and paste to create your VAT return and enter the figures, but you can use calculated fields.

"But if you keep paper records, you are going to have to change how you process your bookkeeping!"

Now, might be the perfect time to review your bookkeeping, check your methods are compliant with Making Tax Digital for VAT, and implement a new or improved system if they are not.

This is something we can help and support you with at Silicon Bullet, either by performing a review with you, or advising on the best way forward for your bookkeeping for your business.

If anything I've written here resonates with you, call me on 01604 420057 and let's see how we can help you.