From 1 November 2022 the old VAT online facility for submitting returns will not be available unless the business has obtained exemption from Making Tax Digital (MTD). Businesses using VAT Annual Accounting will be able to use this facility until 15 May 2023.
All VAT registered businesses should now keep digital records and file their VAT returns through MTD-compatible software, unless they have obtained an exemption from MTD. It is currently still possible to use the old online facility to file VAT returns but once a business has signed up for MTD this facility is withdrawn. From 1 November it will be withdrawn automatically for those businesses that have not signed up for MTD unless they have been granted exemption. If businesses do not have MTD-compatible software, or have not made arrangements to submit their VAT returns via MTD, they will not be able to submit the returns. This could result in penalties for late or unfiled returns.
If you are already exempt from VAT online filing you will also be exempt from MTD.
If you think you should be exempt from MTD because:
- of your age, a disability or where you live (no or poor internet access)
- you object to using computers on religious grounds
- of any other reason why it’s not reasonable or practical to keep digital records
If you haven’t yet signed up for Making Tax Digital or claimed exemption you need to take action now.