Making Tax Digital for VAT in April 2022

16/02/2022 By: Alison Ward

Are you ready for Making Tax Digital for VAT in April 2022?

Since 1 April 2019, VAT-registered businesses in the UK above the registration threshold (currently £85,000) need to submit their VAT returns using “functional compatible software” and store their VAT accounting records digitally.

But as of 1 April 2022, all VAT-registered businesses will be required to use MTD for their VAT accounting.

This includes around 700,000 businesses that are registered for VAT but are below the VAT threshold, so may not have considered MTD for VAT before now.

With this deadline approaching, we’ve updated this Making Tax Digital checklist to help all businesses get up to speed with MTD for VAT if they find themselves needing to.

We hope the information below will be of use for your business.

Making Tax Digital Checklist: Ensure you’re ready

What the checklist covers:

  • Figure out if your business will be impacted by MTD for VAT in April 2022.
  • Exemptions and deferrals from MTD for VAT.
  • Work out which business processes need to be adapted for MTD for VAT.
  • Ensure you have “functional compatible software” for MTD for VAT.
  • Work out when to switch to MTD for VAT.
  • Final thoughts on Making Tax Digital.

Step by step guide Making Tax Digital for VAT

What is covered in this article:

  • What is the April 2022 mandation of MTD for VAT all about?
  • When is the first Making Tax Digital for VAT return due?
  • When businesses should sign up for MTD for VAT and file their first returns
  • Registering for MTD for VAT as an agent in 6 steps
  • Registering for MTD for VAT as a business
  • Final thoughts on Making Tax Digital for VAT

19 key Making Tax Digital questions answered

Breakdown of all questions:

  • What is Making Tax Digital for VAT?
  • When will the scope of MTD for VAT expand?
  • Is Making Tax Digital for VAT compulsory?
  • Is Making Tax Digital only for VAT?
  • What records do businesses need to keep digitally?
  • Who does MTD for VAT apply to?
  • Who is exempt from MTD for VAT?
  • If I am exempt, how do I file my VAT Returns?
  • What is the timetable for MTD for VAT?
  • What is the MTD for VAT deadline?
  • What was the soft-landing period?
  • What should you be doing to prepare for MTD for VAT?
  • What about VAT special schemes?
  • How do I register for MTD for VAT?
  • What information needs to be submitted?
  • How do I submit a MTD for VAT Return?
  • Who can file the MTD for VAT Return?
  • How do I file my VAT Return once I am in MTD for VAT?
  • What happens if I can’t file my VAT Return once registered?

Making Tax Digital for VAT deadlines

What this article covers:

  • Key dates to know for MTD for VAT
  • Your timeline for preparing for MTD for VAT
  • MTD for VAT deadlines: FAQs
  • Final thoughts on MTD deadlines

Should you have any queries regarding Making Tax Digital, please contact us using the button below.

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