Notice from HMRC

September 23rd 2022

Next quarterly or monthly VAT return must be filed using MTD-compatible software

From Tuesday 1 November 2022, businesses will no longer be able to use their existing VAT online account to file their quarterly or monthly VAT returns.

Businesses that file annual VAT returns will still be able to use their VAT online account until 15 May 2023.

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

If businesses do not sign up for MTD and file their VAT returns through MTD-compatible software, they may have to pay a penalty. The best way for businesses to avoid penalties is to start using MTD now.

Even if businesses already use MTD-compatible software to keep their records and file their VAT returns online, don’t forget they must sign up to MTD before they file their next return if they have not already done so.

What businesses need to do now, or they could face a penalty
If businesses haven’t signed up to MTD and started using compatible software already, they must follow these steps now:

Step 1. Choose MTD-compatible software that’s right for them – you can find a list of software, including free options, on GOV.UK.
Step 2. Check the permissions in their software – once they’ve allowed it to work with MTD, they can file their return easily. Go to GOV.UK and search ‘manage permissions for tax software’ for information on how your clients should do this.
Step 3. Keep digital records for their current and future VAT returns – you can find out what records they need to keep on GOV.UK.
Step 4. Sign up for MTD and file their future VAT returns using your MTD-compatible software – to find out how to do this, go to GOV.UK and search ‘record VAT’.

Businesses who file quarterly or monthly VAT returns must complete these steps in order to file their returns due after 1 November 2022.

Help and support avaliable
Businesses may be able to get a discount on software through the UK Government’s Help to Grow: Digital scheme, which offers 50% off compatible digital accounting software.

For help and support for Making Tax Digital on GOV.UK, where busineses can find useful videos, register for live webinars, and see the latest guidance and updates on MTD for VAT.

Protect yourself and your information  
Never share your HMRC sign-in details. Someone using them could steal from you or make a fraudulent claim in your name.

If someone contacts you saying they’re from HMRC and wants you to transfer money urgently or give personal information, never let yourself be rushed. Take your time and check HMRC’s advice about scams on GOV.UK.

Related Services