HMRC Making Tax Digital for VAT from 1 November 2022
VAT registered businesses not yet filing through the HMRC Making Tax Digital for VAT system will no longer be able to use their existing VAT online account from 1 November 2022.
Many business owners will have migrated to cloud accounting software, with registered software for submitting VAT returns, but there are alternative options available.
Alongside the requirement to use compatible software, there will be new VAT penalties introduced from 1 January 2023.
New penalty rates and late-payment penalties will be introduced, with Time to Pay arrangements becoming more important for anyone having difficulty making payments.