From April 2022, all VAT-registered businesses, including those with a turnover below the VAT threshold, will be required to keep VAT records digitally and send returns using Making Tax Digital (MTD) compatible software.
Currently, and since its inception in April 2019, MTD requirements are only for VAT-registered businesses with VAT-able sales exceeding £85,000. However from April 2022, VAT-registered businesses with VAT-able sales below £85,000 must also follows MTD rules.
Further MTD regulations will commence in 2024, with the introduction of Making Tax Digital for Income Tax. This will require self-employed businesses and landlords with annual business or property income above £10,000 to follow the rules for MTD for Income Tax Self-Assessment from April 2024.
Get in touch
HMRC is sending letters to VAT-registered businesses below the £85,000 threshold about the upcoming Making Tax Digital rules effective from April 2022. If you have received this letter, or think you will now fall into this MTD regime, please contact our team on 01788 539000 or 0116 261 0061 or email us at firstname.lastname@example.org.
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