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Does Making Tax Digital for VAT affect my business?

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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.

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