VAT registered businesses with turnover exceeding £85k have been required to keep digital records and file VAT returns through making tax digital (MTD) compatible software for more than three years. All remaining VAT registered business have been moving across to this system since 1 April 2022.
HMRC have now announced the old VAT portal will be closing on 1 November 2022, to ensure all VAT registered businesses are complying with the new rules.
The only exception is for digitally excluded businesses, who will need to apply to continue filing VAT returns through the old portal. Businesses that file annual returns can continue using the old portal until 15 May 2023.
HMRC will be issuing penalties and interest from January 2023 so if you are a VAT registered businesses not yet complying with the MTD for VAT rules, please get in touch if you would like assistance setting this up.
If you are still submitting VAT returns through the old portal, using non MTD compliant software, your options now would appear to be:
- Upgrade to MTD compliant software
- Use bridging software eg https://www.taxoptimiser.co.uk/
- If eligible, VAT de-register
Disclaimer - All information in this post was correct at time of writing.