Further to the announcement that HMRC will be closing the online VAT return with effect from 1 November, HMRC has contacted agents with further details of the closure.
The bulk email sent to agents confirms that the online VAT return will close on 1 November for most businesses filing VAT returns quarterly or monthly. However, HMRC has announced that businesses with a taxable turnover of less than £85,000 per annum can continue to use their VAT online account for a limited period to file VAT returns due on 7 November.
This is a welcome concession as these businesses have only been subject to the Making Tax Digital (MTD) VAT rules since this April. It will effectively give taxpayers between one and three additional months to register for MTD.
Unless exempt from MTD, businesses that have not yet registered for MTD should follow these steps now:
- Choose (or build) MTD-compatible software.
- Keep digital records for current and future VAT returns.
- Sign up for MTD and file future VAT returns using MTD-compatible software
It is also possible for businesses to appoint an agent to act on their behalf and file MTD VAT returns (although this will still require the business to sign up for MTD).
HMRC’s email reconfirms that:
- businesses filing VAT returns annually will be able to use their VAT online account to file VAT returns until 15 May 2023; and
- businesses can apply for exemption from MTD on gov.uk.
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 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 FacultyMore from the Tax Faculty
Latest news
TAXwire
Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter
Practical guidance
TAXline
Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.
Technical support
Webinars
Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.
