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Making Tax Digital (MTD) for VAT changes from 1st April 2022

Making Tax Digital (MTD) for VAT changes from 1st April 2022

Although HMRC has issued clear instructions on when business new to Making Tax Digital (MTD) VAT should complete the process, a lot of eligible businesses still are unaware of the change and the deadline.

Previously only VAT-registered companies with incomes over £85,000 had to file their VAT returns through MTD. After the success of MTD introduction to VAT-registered businesses above the threshold, this year HMRC announced that from 1st April 2022 it is a mandatory requirement for VAT-registered business to file their VAT returns digitally through MTD, regardless of their turnover.

When do you need to register for MTD?

HMRC has published a guidance on how to determine the start date for different VAT return periods. They also emphasised the best time to sign up: between the filing of the last non-MTD VAT return and the filing of the first MTD VAT return.

Those who pay by direct debit must sign up at least:

  • Seven days prior to the due date of their first MTD return, and
  • Five days following the due date of their last non-MTD return.

For people who do not pay by direct debit, the procedure is more flexible, but they must sign up at least three days before their first MTD return is due.

For UK SMEs, failure to comply with MTD will lead to penalties on a first completed VAT return, on or after the deadline. Going digital may seem like a daunting prospect, but it doesn’t need to be – and there is plenty of help and support available for those who are yet to embark on the process, as deadline day approaches. You can contact us for advice on the MTD for VAT.

Further information on MTD for VAT

VAT Notice 700/22: Making Tax Digital for VAT – GOV.UK (

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