HMRC extends Making Tax Digital (MTD) platform to cover all UK VAT registered businesses from 1 April 2022.
HMRC announced the extension of Making Tax Digital (MTD) to cover all UK VAT registered businesses from 1 April 2022.
Currently, the MTD rules only apply to businesses whose UK taxable turnover is above the £85,000 UK VAT registration threshold. These new requirements impact all businesses voluntarily registered for UK VAT. This is because their UK taxable turnover is under the threshold. So, there is no requirement currently to comply with MTD.
Under MTD these businesses will have a requirement to keep digital records and use compatible software to submit the VAT returns online. As a result, this will be complex and costly for some small businesses.