September 1, 2022
by  Josh Sab

Making Tax Digital - What you need to know.

- From 1 April 2022, all VAT-registered businesses are required to use MTD for VAT to show how much revenue they generate. 

- Paper records and VAT submissions are full of errors! – a poll by YouGov found that 61% of businesses admitted to losing receipts and making mistakes during the manual process of inputting and calculating data.

- MTD is designed to offer a way of reducing the time cost for business administration and tax filing.

- In March 2020, an independent study was conducted on the impact of MTD on record keeping and error management for small businesses. It found that the firms making use of the system for VAT with integrated accounts software spent less time on tax.

Exemptions as confirmed by the HMRC:

- The 'digitally excluded', or those who cannot use digital tools for reasons of religion, age, disability, remoteness, or any other reason

- Charities (not including subsidiaries)

- Unincorporated businesses and landlords with annual sales below the £10,000 threshold

 

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