Skip to content

Quality Advice Quality Service

Show / hide the search form Menu

Making Tax Digital (MTD) Update

It’s been almost 2 years since HMRC introduced the first phase of Making Tax Digital (MTD) for VAT registered businesses with a turnover above the VAT threshold of £85,000. Although the pace of the wider ‘Making Tax Digital’ strategy rollout has been slowed by the impact of COVID-19, you should be aware of the key dates for how MTD will be expanded, many of which may be closer than you think.

  • April 2021 – Anyone under the VAT threshold can continue to submit returns via their government gateway account or using the non-MTD VAT process in Xero or other software. However, HMRC has announced that non-MTD VAT submissions via software providers will  not be supported from April 2021. This means that quarterly VAT periods ending in  December 2020, January 2021 or February 2021 will be the last VAT returns you can submit  using the old return process in Xero or other software
  • April 2022 – It will be compulsory for all VAT registered businesses to register for MTD
  • April 2023 – MTD for Income Tax: businesses and landlords with business and property income over £10,000 per annum which are liable for Income Tax, will need to keep digital records and use software to update HMRC quarterly through MTD
  • April 2026 – MTD for Corporation tax is currently being consulted on and this is HMRC’s target date for roll out.

In order to continue submitting your VAT returns through Xero, or other software, and in preparation for future changes we would recommend that you register for MTD now. The alternative is that you prepare and extract your VAT return figures and input these manually into your HMRC government gateway account, which is more time consuming.

If you are still using manual accounting records and are concerned about the switch to digital don’t be. We have a dedicated team who have guided many clients through this process, and many have switched to using Xero which is our recommended solution both for cost and ease
of use.

If you would like to have a chat about your options then please get in touch with our team of MTD experts at vat@gwayre.co.uk or alternatively, call 01289 306688.

Back to News and Events

News and Events

Global Market Commentary – June

2024 always promised to be a busy year for elections, with one half of the world’s population heading to the polls. As far as financial markets are concerned, political surprises have now bubbled up in several countries within a short period of time. With much still to be decided by voters, there is greater uncertainty in the short-term investment outlook. However, inflation remains on a declining path in the UK, US and Europe, while economic growth appears strong.

Reminder of our Terms of Business

Greaves West & Ayre (GWA) has tried to deliver “Quality Advice – Quality Service” for over 106 years. Over…

Join us at the Summer Shows 2024

Summer is just round the corner and we would be delighted if you joined us at the Haddington Show and the Border Union Show once again this year. 

Global Market Commentary – May

Recent data has hinted at a divergence between the US and UK/EU economies, with signs of an economic slowdown in the States coinciding with Britain and Europe rebounding from a period of stagnant GDP growth. Having been neglected for several years post-Brexit, there is hope that UK stocks may finally prosper given a more favourable macroeconomic environment.