HMRC are now signing up automatically VAT-registered businesses to its new Making Tax Digital (MTD) for VAT programme. These are businesses which should have enrolled into MTD already.¹ Under MTD, businesses need to keep their VAT records digitally if they do not already do so and file their VAT returns using MTD compliant software. The Low Incomes Tax Reform Group (LITRG) warns the many thousands who are not yet complying with these MTD requirements that they will need to act now or risk left unable to file their next VAT return or pay the VAT due unless an exemption applies. This could eventually lead to them facing financial penalties.
Source: tax.org.uk
