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There’s been lots of activity around the government’s Making Tax Digital initiative recently.
In addition to the announcement that the introduction of MTD for Income Tax has been delayed by a year, HMRC is trialling a forced closure of the online VAT return for 800 businesses that should be complying with Making Tax Digital for VAT but are not. Affected businesses will be unable to file VAT returns that are due on 7 October 2021 unless they have signed up to MTD for VAT.
Making Tax Digital for VAT became mandatory for businesses with a taxable turnover over the VAT-registration threshold of £85,000 in April 2019. Around 100,000 businesses have yet to comply.
In May of this year as we reported in our June blog HMRC sent letters to 800 businesses warning them that the online VAT return would be closed to them if they had not signed up to MTD for VAT and that this would take effect from their June-August 2021 VAT return, due on 7 October 2021.
|It is understood that HMRC may consider extending the forced closure to other businesses.
What to do if you think your business is affected
Businesses expecting to file their June-August VAT return via HMRC’s online VAT return should check that this option is available to them.
Businesses that have not yet registered for MTD for VAT, can find information on how to do so on the gov.uk website here, noting that compatible software needs to be in place before signing up.
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