The next step is for HMRC to automatically sign-up businesses to MTD VAT that have not done so themselves. Businesses that are exempt, or have applied for exemption, should not be transferred across. HMRC intends to remove the functionality to sign up to MTD VAT from gov.uk on 24 November 2022.
There is a risk that HMRC will sign-up businesses that have agreed an exemption or applied for one. Businesses in this situation will need to contact HMRC to request that the online VAT return be switched back on.
ICAEW’s Tax Faculty says: “The fact that most businesses are no longer able to use the online VAT return to file monthly or quarterly VAT returns may come as a surprise to many. Businesses that have not made arrangements to file their VAT returns using MTD compatible software need to take urgent action or apply for digital exclusion exemption.”
The online VAT return’s closure follows the completed transfer of taxpayers’ VAT records from the VAT Mainframe (VMF) to the newer Enterprise Tax Management Platform (ETMP) – with a few exceptions. It also marks the end of the MTD VAT project team, with their responsibilities now transferred to VAT operations.
As businesses should now be using MTD for all VAT as standard, the terminology across HMRC guidance will gradually be changing from “MTD VAT” to “VAT”. This will start with the Agent Services Account.
The Tax Faculty
ICAEW's Tax Faculty is 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 from the Tax Faculty
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly enewsletter
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.