MTD for VAT extension planned for 2022

Oct 22, 2020


By Lyndsey Hall


Since 2019, the vast majority of VAT-registered businesses with a taxable turnover above the VAT threshold (£85,000) have been mandated to keep digital VAT records and send returns using Making Tax Digital (MTD)-compatible software.

From April 2022 these requirements will apply to all VAT-registered businesses.

MTD for Income Tax Self-Assessment gets a launch date

It has also been announced that MTD for Income Tax Self-Assessment (ITSA), which was originally intended to start in 2018, will finally be introduced from April 2023 for unincorporated businesses and landlords with total business or property income above £10,000 per year.

Most businesses will have 2 years to prepare and test the service voluntarily prior to its introduction, much like the beta test HMRC ran for the original software.

Take a look at our MTD resources for more details on the government’s move towards digital tax reporting:

HMRC reveals future plans for MTD

Registering for MTD for VAT

MTD for VAT-registered businesses

Have you used the digital tax system yet? How have you found it so far? We’d love to hear from you, leave a comment below or let us know on Linkedin.

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