Product & SavingsPosted on 19.08.2022
Making Tax Digital
Back in 1 April 2019, the government launched their Making Tax Digital initiative. Since then, certain taxpayers have had to submit their VAT returns, and store their VAT records, digitally. The aim is that businesses should create their VAT records from the source documentation with little or no manual intervention.
This affects your business
The rules were extended to all VAT registered businesses, with very limited exceptions, for VAT returns with a start date from 1 April 2022. This means that if you are not already doing so, you will be required to ensure that you submit your VAT returns in a compliant manner by that date.
Ready to submit digitally?
Most popular accounting packages have Making Tax Digital capabilities - check that your version of the software is up to date and allows you to submit digitally. If you do not use accounting software, it is possible to use bridging software and submit returns from Excel. But this will require more effort, and it may be sensible to take the plunge now and invest in a proper accounting package.
Warning, fines possible
From 1 April 2022, failure to comply with the rules may result in a penalty of £400 for each return, as well as the normal penalties for a late submission. In addition, from July 2022 HMRC have started switching off access to the old VAT return submission portal for businesses that have not obtained exemption from MTD; you may find you are unable to submit your VAT return in time if you are not set up for MTD already.
The help you need is here
The experts, and our trusted partners, at Markel offer guidance and support to help you with this change. It’s available through the Markel portal, and you can get access by following these steps:
Sign up nowThis affects your business
The rules were extended to all VAT registered businesses, with very limited exceptions, for VAT returns with a start date from 1 April 2022. This means that if you are not already doing so, you will be required to ensure that you submit your VAT returns in a compliant manner by that date.
Ready to submit digitally?
Most popular accounting packages have Making Tax Digital capabilities - check that your version of the software is up to date and allows you to submit digitally. If you do not use accounting software, it is possible to use bridging software and submit returns from Excel. But this will require more effort, and it may be sensible to take the plunge now and invest in a proper accounting package.
Warning, fines possible
From 1 April 2022, failure to comply with the rules may result in a penalty of £400 for each return, as well as the normal penalties for a late submission. In addition, from July 2022 HMRC have started switching off access to the old VAT return submission portal for businesses that have not obtained exemption from MTD; you may find you are unable to submit your VAT return in time if you are not set up for MTD already.
The help you need is here
The experts, and our trusted partners, at Markel offer guidance and support to help you with this change. It’s available through the Markel portal, and you can get access by following these steps:
- Go to Markel Business Hub
- Select ‘Register’
- Enter your details and register with a valid email address
- In the ‘Token or policy number’ box please enter code: HCpNmm8B
- Click ‘Next’ to proceed
- You will receive an email to verify your account
- Once your email is verified, you’re good to go