[15.09.22]
With the Government’s push towards Making Tax Digital (MTD), HMRC’s website where businesses upload their VAT returns will close on 1st November 2022. From that date, businesses will only be able to file VAT returns using MTD compatible software.
HMRC states that approximately 10% of businesses above the VAT threshold of £85,000, and 55% of businesses below it still need to sign up to MTD VAT – and they need to sign up as soon as possible, and certainly before 1st November. Rather than charging a penalty to those businesses who have not yet signed up, HMRC will just make it impossible for them to file a VAT return, other than using MTD compatible software. Businesses will be at risk of incurring a default surcharge or, from January 2023, late submission penalties and/or late payment penalties and interest.
Some businesses file VAT returns annually; the online VAT return will remain available to these businesses until 15 May 2023.
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