VAT firms have less than a month to be MTD ready

VAT-registered businesses are being reminded that they have until the 1^st of November to be ready for Making Tax Digital (MTD).

From this date, businesses will no longer be able to use their existing VAT online account to submit VAT returns (unless HMRC has agreed they are exempt from MTD).

Businesses will also need to file their VAT returns via MTD-compatible software, and if they fail to do so then they could face a penalty.

HMRC states that even if an organisation currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.

Richard Fuller MP, Economic Secretary to the Treasury, commented, “Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them – growing their business.

“I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.