HMRC has issued a reminder that:
- from 1 November 2022, taxpayers will no longer be able to use their existing VAT online account to file their monthly or quarterly VAT returns
- taxpayers that file annual VAT returns will still be able to use their VAT online account until 15 May 2023
- by law, VAT-registered businesses must now sign up to MTD and use MTD-compatible software to keep their VAT records and file their VAT returns
- there are penalties for businesses that do not sign up for MTD and file their VAT returns through MTD-compatible software,
- even if taxpayers already use MTD-compatible software to keep records and file their VAT returns online, they must sign up to MTD before they file their next return
- businesses may be able to get a discount on software through the UK Government’s Help to Grow: Digital scheme, which offers 50% off compatible digital accounting software