Need help with Making Tax Digital? It’s compulsory from April 2022 for VAT registered businesses
If you run a business, you will have no doubt heard of Making Tax Digital (MTD) for VAT. The government introduced the scheme in 2019, when it became compulsory for any VAT registered business with a turnover of £85,000 or more to keep digital records and use compliant software to submit their VAT returns.
MTD is part of a much wider on-going initiative by the UK government to digitalise the entire tax system. Furthermore, their website reveals that in a recent independent study of over 2000 businesses, nearly 70% reported benefits since their enrolment on the scheme. These included increased confidence of submitting correct figures for their returns, as well as preparation and submitting of their figures faster than before.
As a result, as of December 2021, 11 million VAT returns had been successfully submitted through the scheme, with the majority of taxpayers claiming that using MTD for VAT had reduced the potential for mistakes in at least one aspect of the record keeping, preparing and submitting returns process.
In short, from April 2022, all VAT registered businesses, regardless of turnover amount will need to join MTD. If you need help with Making Tax Digital, the team at Worthwhile Accountancy have you covered! It can be quite a daunting prospect to get to grips with all these new requirements. For example, googling ‘MTD software’ can most certainly result in overwhelm. How to choose the right software, when will I have time to learn this, how do I need to change my current system? Here at Worthwhile, we are set up to deal with all these queries for you.
Likewise, what if you have a business that up to now, turnover has been less than £85,000 but with recent growth will be surpassing this threshold? You will also be in the position of needing to swap to MTD for your VAT returns and therefore you may well need help with Making Tax Digital for April 2022, if you aren’t one of those companies who have signed up voluntarily already.
Naturally, it’s understandable if you’re apprehensive about this new mandatory requirement. There will no longer be the ability to manually type your figures into the boxes on the government’s VAT filing page. If you don’t already, there will be a need to start keeping digital records, via spreadsheets or bookkeeping software. The final figures are then submitted, electronically, via government compliant software directly to HMRC.
Above all, the team at Worthwhile have been filing VAT returns for many of their clients through MTD since its inception in 2019 so let us solve your overwhelm, help you with Making Tax Digital, and take care of filing your VAT returns from April 2022. This, in turn, means you can spend your time more wisely, in areas of your expertise, growing and supporting your company.
If you have any questions about MTD and what it means for you then please get in touch to see how we can help.