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