Companies and sole traders who have not yet finalised their plans to comply with Making Tax Digital need to board the last train departing this month!
The very latest you have to comply with Making Tax Digital (MTD) for paying VAT is August 7, so gather all your VAT and hurry on that train before it’s too late 🚄
Digital Tax Requirements
The August 7th 2022 is the latest date on which you will need to make your first – if you are not already doing this – MTD VAT return. So, if you have not already done so, you have very little time left to make sure you comply with this legislation.
Whether you are required to pay VAT – because your business turnover is above the £85,000 threshold at which you are required to register – or because you have voluntarily registered, you now must keep your records and file your returns electronically.
What happens if you dont?
From April 1, you will need to have filed any VAT due through MTD-compatible software, which includes the likes of QuickBooks and Xero, among others (Something Lotuswise already does 😉).
If you are not able to file your return this way, then HMRC can issue a £400 fine. Plus, from January 2023, HMRC is will bring in a points system, which means you attain points each time you miss a deadline. Once you hit a certain number of points, you will face a £200. That’s not great for any organisation, so consider MTD asap!
the best thing you can do is prepare yourself properly. If you have not sorted this out already, you really are running out of time.
Have you made your tax digital yet? If not, times running out so you better grab your chance before it’s too late! Lotuswise can help you make the process of switching easier, so why not give us a call on 020 3367 1106.