Tag Archives: MTD-VAT-returns

HMRC new ‘VAT Assist’ service

By   5 October 2026
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VAT Assist
HMRC has announced a VAT Assist service which is due to be launched in April 2027.
The service will compare data added to a taxpayer’s VAT return against information HMRC holds for that business to provide incisive feedback to help businesses submit accurate tax returns.
The service will be available to businesses using participating third-party software and HMRC will monitor and review the relevance and effectiveness of the feedback provided.
The pre-submission VAT Return data is transmitted from third-party software to HMRC via an API. That data is analysed in real time, using a rule-based model, comparing to data held within HMRC. Where potential errors are identified, digital ‘nudges’ will be transmitted through the API for the third-party software to present to the taxpayer. 
The message will be displayed to the taxpayer through their software before the return is submitted although the taxpayer is not required to act on the feedback and may proceed with their submission if they consider that the return is correct. 

VAT: MTD reminder

By   4 October 2022
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HMRC have announced that the existing Making Tax Digital (MTD) online portal closes on 31 October 2022.

What businesses need to do now (or they could face a penalty)

If businesses haven not signed up to MTD and started using compatible software already, they must follow these steps now:

Step 1

Choose suitable MTD-compatible software they can find a list of software on GOV.‌‌‌UK.

Step 2

Check the permissions in their software – once they have allowed it to work with MTD, they can file their VAT returns easily. Go to GOV.‌‌‌UK and search ‘manage permissions for tax software’ for information on how businesses should do this.

Step 3

Keep digital records for their current and future VAT returns – a business can find out what records they need to keep on GOV.‌‌‌UK.

Step 4

Sign up for MTD and file their future VAT returns using MTD-compatible software – to find out how to do this, go to GOV.‌‌‌UK and search ‘record VAT’.

Businesses who file quarterly or monthly VAT returns must complete these steps in order to file their returns due after 1‌‌‌ ‌‌November.

Exemption from MTD for VAT

There are exemptions from MTD and they my be applied for here.