A: Yes that is correct, MTD has been extended to all VAT registered businesses for VAT periods that start on or after the 1st April 2022. So for your client the first VAT period that they will need to abide by MTD rules will be the one ending July 22 i.e. 07/22. They can, of course, deregister from VAT voluntarily if they do not want this additional burden as per para 3.2 of N700/11 if they can show that their UK taxable turnover in the next 12 months will be below the VAT deregistration threshold of £83k (although beware implications of deregistration, including for assets on hand per para 7). Alternatively it may be worth applying for exemption from MTD anyway as per chapter 2 of N700/22 in case they are successful.
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Markel Tax offers expert advice on UK tax and VAT via its helpline and provides monthly FAQs with questions and answers on common tax issues for businesses and practitioners.
