Making Tax Digital (MTD) for VAT – Changes from 1 April 2022
From 1 April 2022 all businesses registered for VAT will need to follow the rules for Making Tax Digital (MTD), no matter how big or small the sales are in the business.
MTD means you need to keep digital records, which will include finding MTD compatible software.
Digital records simply mean that you will not record your sales and purchases within a traditional paper ledger, but instead could use excel sheets or other approved accounting software.
Changing from one system to another should always be planned properly. This can help avoid any problems or errors.
There are big benefits to a business using software. Technology can help reduce your errors and help you use your time more efficiently. A lot of software will, as long as the transactions recorded are up to date, will help you plan for the future by giving you an idea of your profit or cashflow.
We can help you make the change to digital records so that it works for you and you meet the requirements of HMRC.
Shaw Austin specialise in using cloud software and are proud to be a QuickBooks Platinum partner, with team members holding the Advanced ProAdvisor accreditation.
There are limited reasons why you may be able to apply for an exemption, so you do not need to follow the MTD rules. This could include your age, a disability or another reason that may not make it practicable. Further details about that can be found here
Shaw Austin are a firm of Chartered Accountants based in Chester supporting independent business throughout the UK. We take the headache out of business accounting and taxation by providing our clients with a personal service.
Published January 2022