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Voluntary VAT submissions - changes from April 2022

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This guide explains how the April 2022 changes to Making Tax Digital (MTD) for VAT may affect you.



In the UK, businesses with a VATable turnover above the VAT threshold are required to register with HMRC for VAT and comply with HMRC's Making Tax Digital (MTD) rules. This is being extended to all VAT registered businesses, including those who are voluntarily VAT registered with a VATable turnover below the VAT threshold.

What's changing?

From April 2022, businesses who are voluntarily VAT registered with a VATable turnover below the VAT threshold will be required to comply with HMRC's Making Tax Digital (MTD) rules. This includes:

  • Signing up with HMRC for MTD for VAT.
  • Ensuring they have MTD for VAT compliant software.
  • Maintaining digital business records for the purposes of VAT.
  • Submitting VAT Returns through compliant software.

How does this affect me?

If your business is affected and you're not currently registered for MTD, there are a few options available to you:  

  • Register for MTD - The sign up deadlines vary depending on your VAT period and you should ensure you have MTD compliant software before you register. If you're already using Sage 50cloud Accounts, your software is MTD compliant.  Read more about MTD >
  • Use an accountant for VAT submissions - Your accountant may be able to submit VAT Returns on your behalf through their Agent Services Account. 
  • Deregister for VAT - We recommend you speak to your accountant for advice on which option is best for you.

TIP: For more information about MTD such as what it is, when to sign up and whether your software is compliant, visit our MTD hub >

For more detailed information about the changes and the options available, visit the Sage blog >

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