HMRC is urging firms to register for Making Tax Digital (MTD) for VAT before the VAT filing date on the 7th August.
Revenue & Customs stated that ‘many of the 1.2 million businesses affected by MTD’, which came into place for VAT periods on 1st April earlier this year, ‘will be required to submit their first quarterly return using compliant software by 7 August’. Businesses with plans to pay by direct debit must be registered by 27 July.
Under MTD for VAT, businesses with a taxable turnover that is above the VAT registration threshold (£85,000) must keep some records digitally and must submit their VAT returns via a compliant software.
HMRC claims that around 10,000 businesses are registering for MTD for VAT every day, with more than 600,000 having already registered. Nearly, 400,000 VAT submissions have successfully been made using MTD software.
Quote from Nigel Holland:
“Make sure to register for MTD for VAT before the deadline, HMRC can issue penalties if people refuse to be compliant.”