HMRC recently announced that non-Making Tax Digital VAT submissions via software providers will not be supported from April 2021. This means that quarterly VAT periods ending in December 2020, January 2021, or February 2021 will be the last VAT returns you can submit using the old VAT return in your existing accounting software without going through the MTD system.
To prepare for this change, you have two options:
- Register for Making Tax Digital returns and payment with HMRC. In any case, this will become a legal requirement from April 2022.
- If you do not feel ready for MTD, or you are under the threshold or part of a VAT Group, you can generate the VAT amounts using the new non-MTD VAT return in your accounting software. (Please note that you will be required to submit the return manually using HMRC online services or by using MTD bridging software.)
For more information and help please contact FoxKash at accountants@foxkash.co.uk.