• Steve Tetley

Changes to the VAT return submission process

Updated: Sep 14

Do you submit your VAT returns via your gov.uk online account? There are big changes being made to this process and you need to be aware of them before the start date of 1st November 2022.

These changes will affect VAT registered businesses who are not already submitting their VAT returns using Making Tax Digital (MTD) software. MTD for VAT became compulsory for the majority of businesses from 1st April 2022.

The only exception (unless an exemption applies – see below) is for businesses that file their VAT returns annually. These businesses will still be able to use their online account for filing returns until 15th May 2023.

Why are HMRC making these changes now?

MTD for VAT has been in place for some time and these changes will ensure that the vast majority of businesses will now file their VAT returns using MTD compatible software.

What are the consequences of not complying?

If you do not sign up for MTD and file your VAT returns through this type of software, then HMRC may charge you a penalty.

How do I apply for an exemption?

You can apply for an exemption if it is not reasonable or practical for you to use computers, software or the internet. HMRC states that this may be because of:

  • your age, a disability or where you live

  • you object to using computers on religious grounds

  • any other reason why it’s not reasonable or practical

To apply for this exemption, please refer to HMRC guidance at GOV.uk.

If your business is subject to an insolvency procedure, then it is automatically exempt from the changes outlined above.

How can rradar help?

If you need support with filing your VAT returns or any other tax issues, please contact our tax expert, Steve Tetley, at Steve.Tetley@rradar.com or on 01482 296923.

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