Businesses must now use compatible software to keep VAT records and file returns
The Independent Garage Association (IGA) is urging garage owners to ensure they are using Making Tax Digital (MTD) compatible software.
All VAT-registered businesses must use MTD compatible software for their VAT returns from 1 November 2022, and they will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns.
Reminding its members, the IGA said: “MTD’s aim is to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow.
“By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns, unless HMRC has agreed they are exempt from MTD.
“Businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account.”
If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty.
Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.
For further details, please click here.
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