1 New VAT Deadline – 1 November
From 1 November VAT registered businesses will have the choice of either using MTD-compatible software or facing penalties. HMRC are closing the facility on their portal for you to enter your VAT return figures manually.
If you thought you had found a way to avoid using compatible accounting software, you were wrong.
If you haven’t signed up to MTD for VAT you first need to choose MTD-compatible software such as QuickBooks, enable it to work with MTD, and then sign up for MTD and start filing your returns this way after 1 November.
Alternatively, give us a shout and we can help you.
You may get a discount by taking advantage of the Help to Grow: Digital scheme which offers a 50% discount on digital technology of up to £5,000. QuickBooks is eligible for the scheme.
2 New Penalty Regime for late VAT Returns
If you always received repayments or file nil returns, you did not need to worry about late filing penalties. Farmers were among the worst offenders. However, when the new penalty regime begins, late repayment and nil returns will also now attract late filing penalties.
This will apply for VAT periods starting on or after 1 January 2023, so if you are behind with your VAT returns, it could be a good time to get caught up.
Also, this could also be a good time to de-register if you do not really use or benefit from VAT registration.