HMRC’s fact sheet on MTD VAT penalties provides long overdue guidance on the penalties that apply to MTD VAT.
The fact sheet covers the filing method penalty that can be applied to businesses that fail to sign up to MTD VAT and continue to file their VAT return, other than using MTD functional compatible software. ICAEW’s Tax Faculty understands that HMRC will start to charge this penalty once all VAT records have been transferred to its new database later this year.
The general regulatory penalty that can be applied for failing to comply with MTD digital record keeping requirements (including the requirement for digital links) is also highlighted.
Further detail is available in ICAEW’s guidance MTD for VAT penalties.
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.
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