Businesses who have a turnover of £85,000 or more in any 12 month period must be VAT registered. Businesses whose turnover is below this VAT threshold can choose to be VAT registered as well, but in doing so they must adhere to the VAT registration and filing rules.
It is now mandatory for all VAT registered businesses to comply with
HMRC’s Making Tax Digital plan.
MTD is the Government’s strategy for digitising UK taxes. It will ultimately ensure that all businesses and individual taxpayers are paying the correct amount of tax, using a digital based system that will reduce the amount of errors which can be made when submitting tax returns.
HMRC initially introduced MTD in 2019 to VAT registered businesses with a turnover of £85,000 or above. This was subsequently extended in 2022 to VAT registered businesses below the VAT threshold. The plan is to roll out MTD to also include income tax and self assessment (2024), partnerships (2025) and corporation tax (not before 2026).
Failure to comply with MTD for VAT could see businesses incurring large penalties from HMRC.
We work with VAT registered businesses across Droitwich and the West Midlands. This service is often carried out alongside our
bookkeeping service to ensure businesses accurately record their financial transactions and VAT data to comply with MTD.
By outsourcing your VAT to JRMA, we can take this task off your to do list and give you peace of mind that everything is being carried out correctly and on time, to avoid you incurring any penalties from HMRC.
