What is your current VAT status?

1I am VAT registered and above the registration threshold

Broadly, at present businesses above the VAT threshold of £85,000 are covered by MTD, which requires them to keep digital records and provide VAT returns in and through Government-approved software.

What do I need to do?
2I am VAT registered and not above the registration threshold

From April 2022, VAT MTD will be extended to all VAT-registered businesses with turnover below the VAT threshold (£85,000), which presumably means not much change in law but a change in process for those affected businesses.

What do I need to do?
3I am not VAT registered

Under MTD it is proposed that the Self Assessment tax return will be replaced by five new reporting obligations made during and after the tax year. Four quarterly returns followed by a final return.

Your first tax return under such a system is due in the fourth month of your accounting period, you will then have to file with HMRC every three months.

The first tax year likely to be affected is 2023-24. This runs from 6 April 2023 to 5 April 2024. 

If you have an accounting period that is co-terminus with the tax year your:

  • The first report will be due in June/July 2023.
  • The second report will be due in Sept/Oct 2023.
  • The third report will be due in Dec 2023/Jan 2024.
  • Your Self Assessment tax return for 2022-23 will also be due by 31 January 2024.
  • The fourth report will be due in March/April 2024.
  • Fifth and final year-end report deadline, probably January 2025 in the first year.

Based on the returns it is proposed to allow one to pay taxes as you go and eventually it is possible that you will be required to make multiple payments on account.

What do I need to do?

Digital Tax Records

Digital Tax Records take pride in offering you a friendly, conscientious and approachable service. We can manage all of your needs on-site or off-site and can do as much or as little as you require. ​We recognise that not all businesses are the same so we aim to provide a range of packages to suit your needs. From basic support, extensive bookkeeping and payroll to bespoke packages, we provide an experienced and efficient service to suit every business.