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Making Tax Digital for VAT

Making tax digital

MTD for VAT registered business is mandatory from 1 April 2022. 


Making Tax Digital for VAT is part of the overall digitalisation of UK Tax. The MTD scheme requires businesses to keep digital records and use third-party software to submit tax returns which will apply to smaller businesses next year.

As of December 2021, nearly 1.6 million taxpayers had joined Making Tax Digital for VAT with more than 11 million returns successfully submitted.

Do you need to register?
Businesses with a taxable turnover above £85,000 have to register for VAT.

VAT taxable turnover is the total value of everything you sell that is not exempt from VAT . You must register for VAT with HM Revenue and Customs ( HMRC ) if it goes over the current registration threshold in a rolling 12-month period.

You will need:
* your business email address
* a Government Gateway user ID and password - if you do not have a user ID, 
  you can create one when you use the service
* your VAT registration number and latest VAT return

You’ll also need:
* your National Insurance number if you’re a sole trader
* your company registration number and Unique Taxpayer Reference if you’re 
  limited company or registered society
* your Unique Taxpayer Reference and the postcode where you’re registered 
  for Self Assessment if you’re a general partnership
* your Unique Taxpayer Reference, the postcode where you’re registered for 
  Self Assessment and your company’s registration number if you’re a limited 
  partnership

Are you ready to submit your next VAT Return using software compatible with Making Tax Digital? 



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