ICAEW.com works better with JavaScript enabled.

TAX NEWS

MTD VAT notice and guidance updated

Article

Published: 05 Apr 2022 Update History

HMRC has published specific guidance on exactly when businesses new to MTD VAT from April 2022 should complete the sign-up process.

All VAT registered traders must comply with Making Tax Digital VAT (MTD VAT) regulations from the beginning of their first VAT accounting period starting on or after 1 April 2022. About 750,000 traders need to sign up, including about 100,000 who should have been complying since 2019. Those that are unable to comply can apply for a digital exclusion exemption.

Signing up to MTD VAT

HMRC has published a helpful guide which explains how to work out the start date for different accounting periods.

The guidance also highlights the sweet spot for signing up, between the last non-MTD VAT return being filed and the first MTD VAT return being due.

Those that pay by direct debit must sign up at least:

  • seven days before their first MTD return is due; and
  • five days after their last non-MTD return is due.

The system is more flexible for those that do not pay by direct debit who need to sign up at least three days before their first MTD return is due.

Further information

HMRC has also updated the following guidance to reflect the extension of the MTD requirements to all VAT registered businesses:

Guidance is also available from ICAEW’s MTD hub:

ICAEW Know-How from the Tax Faculty

This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image
TAXwire

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly enewsletter

Practical guidance
Cover
TAXline

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image
Webinars

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.