VAT online service to be withdrawn soon
Making Tax Digital for VAT-registered businesses has been mandatory since April 2022. However, up until now you have been able to file returns using the old online VAT account. When is this changing?
The option to complete VAT returns using the online VAT account will be removed from 1 November 2022, unless your business is exempt from the requirements of Making Tax Digital for VAT (MTDfV). Going forward, filing via MTDfV-compliant software will be mandatory. If you fail to do this, you could be charged a penalty. If the return is not filed on time, your payments will also be affected which cause further issues.
If you haven’t already signed up for MTDfV, you must do this as soon as possible. You will need to follow the guidance to set yourself up for this, or you can ask an accountant or tax advisor to file on your behalf (though you will still need to keep digital records).
Related Topics
-
Should you use simplified expenses?
The flat rate expense you can claim for business journeys if you’re self-employed has increased to 55p per mile. Can you use simplified expenses for motoring costs and is it more tax efficient to do so?
-
HMRC targets smaller tax debts
HMRC is stepping up collection of lower‑value tax debts, signalling a firmer approach to long‑overdue liabilities while encouraging earlier engagement. Direct recovery from bank and building society accounts has been re‑introduced on a trial basis, alongside a government consultation on HMRC powers and tax administration. What are the key points to be aware of?
-
New digital process for NI refunds
HMRC has introduced an online service to claim a refund of Class 1 NI contributions but not everyone can use it. What can you do if you've paid too much NI?