The 1st April 2022 marks an important milestone for the Making Tax Digital (MTD) programme.
All VAT registered businesses, regardless of taxable turnover, will legally be required to follow MTD for VAT requirements from their first VAT Return Period starting on or after the 1st April 2022. This means that all VAT registered businesses must use MTD compatible software to keep records digitally and submit their tax returns unless exempt.
This is a step closer towards our aim of a modern, digital tax system, supporting the digitalisation of the UK and making it easier for businesses to get their tax right with an improved customer experience.
Over a third of these businesses below the VAT threshold joined MTD voluntarily, and HMRC will work to ensure all businesses within scope have the support and guidance they need to make the transition to MTD.
Recently published research – Evaluating additional tax revenue from Making Tax Digital for VAT, found that MTD is succeeding in its core aim; to reduce opportunities for tax error or miscalculation.
I would like to take this opportunity now to thank you for your continued support and engagement with the Making Tax Digital programme.
Deputy Director – Customer Readiness and External Stakeholder Team
Making Tax Digital