Making Tax Digital (MTD) became mandatory for all VAT registered businesses in the UK on 1 April 2022.
The government has introduced the scheme in a bid to help taxpayers submit their tax returns correctly, reduce common mistakes and save time.
Evidence shows that MTD is succeeding in its central aims of reducing errors, while also making it faster to prepare and submit returns. Another positive side effect is that it’s helping to boost productivity for businesses.
New research which has been carried out by HMRC and peer reviewed by independent academics, shows that MTD is likely to have generated increased revenue for the Treasury, through reducing errors in both 2019 and 2020.
Nearly 1.6 million taxpayers had joined MTD for VAT as of December 2021, with more than 11 million returns successfully submitted.
VAT-registered businesses which haven’t yet signed up to MTD for VAT should do so now. All VAT-registered businesses must use MTD for their first VAT return period that starts on or after 1 April 2022.
If you’re concerned about any aspect of Making Tax Digital, please don’t hesitate to get in touch with PKB. We can answer any questions you may have as well as help you to choose the software that’s right for you.
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