MTD VAT: Old VAT portal will close on 1 November
HMRC is closing the existing VAT online account at the end of October, leaving VAT-registered businesses the choice of either using MTD-compatible software or facing penalties.
The closure of the online account now means businesses have no other option but to use MTD-compatible software to file their returns and to keep their VAT records. This means that voluntary VAT-registered businesses that only joined MTD VAT from April 2022 have a tight deadline to comply with MTD.
The only exception to this will be digitally excluded businesses, who can continue to use the online VAT account. But again, time is running out for these businesses to apply for an exemption from using software.
Sign up to MTD VAT or face penalties
“The best way for businesses to avoid penalties is to start using MTD now,” said HMRC CEO Jim Harra in a note to agents.
Businesses that fail to do so will be hit with a default su
rcharge or late submission penalties and interest from January 2023.
Contact us for more information.
London: 020 7060 1811