Online VAT returns will close on 1 November 2022 as part of
HMRC’s Making Tax Digital (MTD) movement. This will leave VAT registered businesses to choose either using MTD compatible software or face penalties, unless they are exempt.
Closure of the online account from 1st November means that businesses registered for VAT will have no other option but to now use the
MTD compatible software to file their returns and keep their VAT records.
Businesses that are voluntarily registered for VAT only joined MTD for VAT in April 2022, so these businesses will have a tighter deadline than many others to comply with MTD.
Businesses that are digitally excluded will still be able to use the online VAT portal to submit their records, however time is running out for these businesses to apply for an exemption from using MTD compatible software.
Although the portal closes on the 1st November 2022 if your business files annual returns you can still use the portal until 15 May 2023.
WHAT HAPPENS IF I MISS THE DEADLINE?
Businesses that fail to meet the 1st November 2022 deadline will be hit with a default surcharge or they may face a late submission penalty with interest from 1 January 2023.
If you are concerned about the upcoming deadline of 1st November and you are yet to move across to MTD compatible software, then you could benefit from a discussion with one of our cloud accounting specialists, who are there to guide you and provide training on a
cloud accounting software that is best suited to your business.
Contact us today to get started.