HMRC will be contacting you if your turnover is below the £85,000 threshold for VAT registration to alert you of your need to comply with MTD for VAT as of April 2022.
MTD for VAT was introduced in April 2019 for businesses with turnover exceeding £85,000, and from April 1st, 2022, all VAT -registered businesses will need to comply, it is estimated that approx 1.1.m UK businesses with taxable turnover below £85,000 will be affected by the change.
Which records must be maintained digitally?
It is expected that you maintain the following records in digital format;
- Business name, address and VAT registration number
- Details of your VAT accounting schemes
- VAT on good or services you supply
- VAT on goods or services you receive
- VAT return adjustments
- The time and value of supply for everything you buy and sell
- The rate of VAT on goods or service syou supply
- Reverse charge transactions
- If using a Retail Scheme, details of your total daily gross takings
- If using the Flat Rate Scheme, details of items you can reclaim
- If using the Gold Accounting Scheme, the total sales and the VAT on the sales
- Documents that cover multiple transactions made on behalf of your business by either volunteers for charity fundraising, a third party or employees for expsnes in petty cash.
HMRC has started to contact these business owners and will be staging their letters between November 2021 and February 2022, so if you receive a letter regarding MTD for VAT, reach out to the team at MJB Avanti | 08000 388799 to see how we can help you with your making tax digital compliance.
If you have already registered voluntarily, you will not receive a letter and if you believe you may be exempt, you will be allowed to apply for an exemption.
Source: Gov.UK and ICAEW