New Forest Ribbon
New Forest

12/05/2021

End of ‘soft landing’ period for Making Tax Digital for VAT

Since 1 April 2019, Making Tax Digital (MTD) for VAT has required all VAT-registered businesses with taxable turnover above the VAT registration threshold of £85,000 to keep records digitally and file their VAT Returns using software.

HMRC gave a two year ‘soft landing period’  to help businesses put digital links in place between all parts of the functional compatible software they use for keeping records digitally and filing VAT Returns. During this period, if a digital link was not established, HMRC accepted the use of ‘cut and paste’ or ‘copy and paste’ as being a digital link.

The ‘soft landing period’ is now coming to an end and businesses are required to have digital links in place for their first VAT Return period starting on or after 1 April 2021.

The next stage of MTD for VAT is due to take effect from April 2022 and will extend the MTD requirements to smaller VAT registered businesses that are below the registration threshold.

For further information on MTD, please contact Andrew Kershaw on 023 8046 1245.

Latest Tweets

The temporary 5% tourism and hospitality VAT rate will increase from 5% to 12.5% until March 2022, before reverting back to the standard rate.
https://bit.ly/2WawlLN

Our 57 ways to grow your business guide covers it all, from simple and effective marketing ideas to the best way to budget for the year. The guide is free to download: https://bit.ly/2TCN6h2

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.