VAT and Making Tax Digital

Woman holding paper while looking at computer screen. Changes to the VAT online account are effective 15th May 2023. Talk to Harrow based RA Accountants about VAT and Making Tax Digital.

Changes to the VAT online account effective 15th May 2023

Unless you are already using Making Tax Digital (MTD) compatible software, you will no longer be able to use your existing VAT online account to file manual VAT returns from Monday 15th May.

By law, all VAT-registered businesses must now use Making Tax Digital (MTD) compatible software to keep their VAT records and to file their VAT returns.

VAT and Making Tax Digital – how to avoid a penalty

Any businesses that still have been filing manually their VAT returns should take the following steps urgently:

  • Choose MTD-compatible software that’s right for your business
  • Check the software permissions to allow it to work with MTD. Go to GOV.UK and search ‘manage permissions for tax software’ for information on how to do this.
  • Keep digital records for current and future VAT returns – more information about what records must be kept digitally is on GOV.UK.
  • File your future VAT returns on time using MTD-compatible software. You can find out how to submit your VAT returns on GOV.UK.

Penalties for late filing, not using MTD compatible software or for late payment

You may receive a penalty if you don’t file on time via compatible software. For VAT accounting periods starting on or after 1 January 2023 HMRC introduced new penalties for VAT returns that are submitted late and VAT which is paid late. The way interest is charged has also changed.

You can find more information about new VAT penalties on GOV.UK or by watching a recorded webinar for businesses.

VAT and Making Tax Digital: Get in touch with RA Accountants VAT specialists

At RA Accountants, we provide a full range of VAT services, including VAT registration, completing and submitting regular VAT returns on your behalf and if necessary, negotiating with HMRC to reduce a VAT assessment.

We offer a complimentary, initial online consultation to discuss your personal circumstances and to see how we can help. Get in touch to book your appointment today.

The information provided on this web site is of a general nature. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from a professional accountant before you take any action or refrain from action. Whilst we endeavour to use reasonable efforts to furnish accurate, complete, reliable, error free and up-to-date information, we do not warrant that it is such. We and our associates disclaim all warranties. The information can only provide an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice.

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