Less than one month left for VAT businesses to be ready for Making Tax Digital filing
HM Revenue and Customs (HMRC) is reminding businesses that from 1 November, they will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns.
By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.
MTD's aim is to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital.
In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.
If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business is currently keeping digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.