On the 8th April 2021, HMRC began the process of retiring the old online XML VAT mainframe submission route and began prompting those still using the old system to migrate onto the new MTD (Making Tax Digital) system, the newer Enterprise Tax Management Platform (ETMP). Any VAT registered businesses who are not already signed up to MTD, HMRC will gradually migrate onto their new ETMP platform in stages during 2021, in advance of MTD for VAT becoming mandatory from April 2022.
For those not wanting to sign up to MTD yet – It will be possible to manually make VAT submissions using HMRC’s
website portal using your company’s Business Tax Account and your VAT online account.
You will need:
- a VAT number
- a Government Gateway user ID and password
The benefits of swapping to MTD:
- The old portal will be remastered using MTD technology, meaning the process will be familiar
- Making the switch sooner will allow for any issues in the process to be solved prior to any deadlines and subsequently will allow the process to be refined
- Being early in the queue to swap over will mean your accountant, accounting software provider and HMRC will have more time to assist you in the process. No one likes being on hold to HMRC 24 hours before a deadline!
- You’ll be able to store your VAT records digitally, meaning less paperwork
The next phase of HMRC’s MTD plan will be to extend the requirements to Self-Assessment for landlords and sole traders, who will need to follow the new rules for their first full accounting period starting on or after 6 April 2023, if their annual business and/or property income is above £10,000. HMRC are running a pilot scheme now.
Those looking for assistance with
Cloud Accounting or those needing help with the switch to Making Tax Digital (MTD), please contact a local Moore (South) adviser who will be able to assist.
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