The new rules for Making Tax Digital (MTD) came into effect on 01 April 2021, but what does this mean in terms of your VAT return processes?
Previously, VAT returns did not need digital links between the accounting software and VAT workings to be MTD compliant. However, for periods starting on or after 1 April 2021, digital links are required between all elements of the VAT return.
Most organisations will only have one VAT return submission remaining before they need to be fully MTD compliant. Therefore, now is the time to review the VAT return processes and test them to ensure that you will be Phase 2 MTD compliant.
We have included a table below which outlines the VAT return by which you must be fully compliant, depending on when your VAT returns are normally due. It also shows the current VAT return which can be used as trial run for checking Phase 2 MTD compliance.
Need more help?
Crowe are able to assist in reviewing your VAT return processes to help ensure you will be compliant under the new rules. Should you wish to discuss your MTD processes in more detail, please get in touch with Nicholas Robson (VAT Manager), or your usual Crowe VAT contact.
View our latest MTD webinar in which we covered all the important information to make sure you're prepared for the MTD phase 2 'hard landing' period.
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