Making Tax Digital (MTD) for VAT is compulsory for businesses that:

• Are VAT registered, and
• Have a taxable turnover above the VAT registration threshold, currently £85,000.

NOTE: From April 2022, MTD also applies to VAT registered businesses which have a turnover below the threshold.

HMRC has stated that there are exemptions for some organisations, including:

• Where religious beliefs are incompatible with the regulation requirements.
• Where it isn't reasonably practicable to use the required digital tools, for example, remoteness of location.
• Businesses subject to an insolvency procedure.

If you think you may be exempt from MTD, you should contact the HMRC VAT Helpline to make alternative arrangements.

Find out more

• Making Tax Digital Help Centre
• Gov.uk - Making Tax Digital for VAT

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