HMRC suggests VAT-registered firms sign up for Making Tax Digital for VAT prior to 1 April 2022. Firms are asked to take steps to prepare for Making Tax Digital for VAT before it is declared compulsory for all VAT-registered firms from 1 April 2022.
Making Tax Digital is designed to assist organizations to remove common mistakes and saving time managing their tax affairs. Making Tax Digital for VAT is included in the overall UK tax digitalisation.
In July 2020, it was declared that all VAT-registered organizations are mandated to file online through Making Tax Digital from April 2022 no matter how much is the turnover.
To sign up to Making Tax Digital for VAT, businesses, or an agent on a business’s behalf, are required to:
- evaluate which software packages are compatible with Making Tax Digital for VAT
- keep digital records beginning from 1 April 2022 or the initiation of their VAT period
- sign up and provide their VAT Return via Making Tax Digital
HMRC is conducting a series of webinars for businesses that require assistance in signing up for Making Tax Digital. To know more, you can use HMRC’s Making Tax Digital help page.