Tuesday 12th April, 2022
HMRC has developed an electronic VAT model that came into force on 1 April this year. The model called Making Tax Digital for VAT is part of the overall digitalisation of UK Tax.
As of December 2021, nearly 1.6 million taxpayers had joined Making Tax Digital for VAT with more than 11 million returns successfully submitted. Around a third of VAT-registered businesses with taxable turnover below £85,000 have voluntarily signed up to Making Tax Digital for VAT ahead of April 2022, and thousands more are signing up each week. According to HMRC.
In July 2020, it was announced that all VAT-registered businesses must file digitally through Making Tax Digital from April 2022, regardless of turnover.
Joanna Rowland, HMRC’s Director General for Transformation, said: Making Tax Digital is fundamental to the delivery of a trusted and modern tax system, making it easier for businesses to get their tax right and supporting the UK to go digital.”
More information can be found on HMRC’s Making Tax Digital help page.