{"id":4631,"date":"2022-03-31T15:01:11","date_gmt":"2022-03-31T15:01:11","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=4631"},"modified":"2022-03-31T15:01:15","modified_gmt":"2022-03-31T15:01:15","slug":"latest-deadline-for-making-tax-digital-for-vat-comes-into-force-imminently","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/latest-deadline-for-making-tax-digital-for-vat-comes-into-force-imminently\/","title":{"rendered":"Latest deadline for Making Tax Digital for VAT comes into force imminently"},"content":{"rendered":"<p>A major change in the way VAT is reported comes into force from tomorrow. Every small business that charges VAT will have to file accounts through the HM Revenue &amp; Customs (HMRC) Making Tax Digital (MTD) system.<\/p>\n<p><!--more--><\/p>\n<p>All VAT-registered businesses must use MTD for VAT for their first VAT return starting on or after 1 April 2022.<\/p>\n<p><strong>Making Tax Digital April 2022 \u2013 what\u2019s changing<\/strong><\/p>\n<p>It\u2019s been over two and a half years since HMRC went live with its MTD for VAT pilot. Since April 2019, UK businesses above the \u00a385,000 VAT threshold have been tasked with processing their returns digitally.<\/p>\n<p>This entails\u00a0 using software for:<\/p>\n<ul>\n<li>Recording and maintaining your VAT accounting records<\/li>\n<li>Creating VAT Returns<\/li>\n<li>Sending the VAT Returns to HMRC<\/li>\n<\/ul>\n<p>Instead of submitting VAT returns on the HMRC website, businesses will need to use approved software and your accountant will be able to submit the returns on their behalf.<\/p>\n<p>HMRC says MTD helps taxpayers get their tax returns right by reducing common mistakes as well as saving time managing their tax affairs and is a key part of the overall digitalisation of UK tax.<\/p>\n<p>Records must be kept digitally and include:<\/p>\n<ul>\n<li>The name of the business<\/li>\n<li>Address of the business<\/li>\n<li>The VAT registration number<\/li>\n<li>Any details of any VAT accounting schemes currently in use<\/li>\n<li>Most businesses will need to record for each invoice the time and date of supply, the net value of the invoice and the rate used to calculate VAT.<\/li>\n<\/ul>\n<p>Some businesses will need to keep more or less information depending on their circumstances. Your accountant will advise.<\/p>\n<p>HMRC says that its research, peer-reviewed by independent academics, shows MTD is likely to have generated increased revenue through reducing errors in both 2019 and 2020.<\/p>\n<p>Nearly 1.6 million taxpayers had joined MTD for VAT as of December 2021 with more than 11 million returns successfully submitted.<\/p>\n<p><strong>Streamlining the processes<\/strong><\/p>\n<p>Lucy Frazer, HM Treasury\u2019s Financial Secretary to the Treasury, said: \u201cBusinesses using MTD are saving time on their tax affairs, streamlining their processes and boosting their productivity as a result.<\/p>\n<p>\u201cOur first move towards a modern, digital tax service \u2013 MTD makes it easier for businesses to get their tax right first time.\u201d<\/p>\n<p>For help and advice with related matters, please get in touch with our expert team today.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A major change in the way VAT is reported comes into force from tomorrow. Every small business that charges VAT will have to file accounts through the HM Revenue &amp; Customs (HMRC) Making Tax Digital (MTD) system.<\/p>\n","protected":false},"author":2,"featured_media":4633,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,31,33,27],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4631"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4631"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4631\/revisions"}],"predecessor-version":[{"id":4632,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4631\/revisions\/4632"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/4633"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}