Most businesses have already signed up for Making Tax Digital (MTD) for VAT as a legal requirement. Now, to make this process even more quicker for the remaining businesses, the HM Revenue and Customs Office (HMRC) has announced that all remaining businesses will be signing up to MTD automatically unless they are exempt or have applied for exemption.

The sign-up journey on GOV.UK decommissioned on the 24th of November 2022. This means that businesses no longer need to sign up for MTD, and can no longer use their existing VAT online account. Now, businesses must use MTD-compatible software to keep their VAT records and file their VAT returns. If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. 

With this latest update from HMRC, we’d like to let you know that we continue to support our clients by removing links to the sign-up journey, helping them to keep digital records, and to submit their VAT returns through our MTD-compatible software. Find our HMRC-recognized MTD-compatible software on GOV.UK by searching for “Zumzum”. 

Please note that the next VAT return was due on 7 December 2022. You must act now. You’ll no longer be able to use your existing VAT online account to submit your VAT returns. The only way to file your VAT returns is through Making Tax Digital (MTD) compatible software. 

HMRC VAT: Step by step Making Tax Digital

1. Choose MTD-compatible software that’s right for you. You can find a list of software, including our product Zumzum Financials on GOV.UK.
2. Check the permissions in your software
3. Keep digital records for your current and future VAT returns.
4. File your future VAT returns using your MTD-compatible software.

Benefits of MTD

• MTD aims to help businesses get their tax right the first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow.
• Making Tax Digital can help businesses reduces administration workload and frees up time for them to grow their business.

Tips to protect yourself and your information

• Never share your HMRC sign-in details. Someone using them could steal from you or make a fraudulent claim in your name.
• If someone contacts you saying they’re from HMRC and wants you to transfer money urgently or give personal information, never let yourself be rushed. Take your time and check HMRC’s advice about scams on GOV.UK.

Contact us for any questions by filling out the contact form. 

If you require immediate assistance please call us at +44 (0) 87 080 33 1 33. We’re happy to answer all your questions.