Does Making Tax Digital for VAT affect my business?

An overview of which businesses are affected by Making Tax Digital for VAT.

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