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VAT-registered SMEs and self-employed people must register for Making Tax Digital (MTD). Essentially, MTD is about filing VAT returns digitally. New rules came into force on 1 April 2022.  If you haven’t signed up yet, do it now. It’s important so make it a priority.

 

Filing VAT returns digitally

Basically, there are two options. Some businesses submit monthly VAT returns. Others report on a quarterly basis. Under MTD rules, this makes a difference when it comes to filing your returns.

 

Monthly returns

So, your April monthly VAT return covers 1-30 April 2022. You need to file it digitally. However, make sure your software is compatible with HMRC’s systems. It needs to connect directly to HMRC. The software then sends data using digital links.

 

Filing quarterly

Now, what if you file quarterly VAT returns? The quarter end date is key. Note your first return with a quarter end date after 1 April 2022. Then, file this and all subsequent returns digitally.

 

Examples

Let’s say your quarter end is March 2022. This covers VAT for April, May and June 2022 inclusive. HMRC expects to receive the return by 30 June 2022. Clearly, the quarter end falls prior to April 1. It means you don’t have to file the return digitally. Although you can, of course, choose to do so. A June quarter end covers VAT for July, August and September inclusive. The return is due on 30 September 2022. Here, the quarter end date falls after April 1. Therefore, you must file it digitally.

 

Need help?

Of course, all SMEs and self-employed workers are getting used to the new MTD for VAT regime. If you’re unsure about filing VAT returns digitally, do seek advice. Our team works with the major software suppliers. We understand the typical issues businesses face. Consequently, we can help you to meet your statutory obligations. To find out more, call us on 01785 243276.