Major changes to HM Revenue & Customs’ (HMRC) VAT filing system “will impact” VAT-registered businesses who have not yet signed up to Making Tax Digital (MTD), it has been warned.
The changes come ahead of April 2022, when MTD will be made mandatory for all VAT-registered traders.
According to the notice, VAT records currently held on the older ‘VAT Mainframe (VMF)’ will be moved to the newer ‘Enterprise Tax Management Platform (ETMP)’ to prepare the system for an influx of new users.
However, the Institute of Chartered Accountants in England and Wales (ICAEW) warned that the works, scheduled to take place in stages throughout 2021, could majorly impact businesses yet to register for MTD.
These types of taxpayers should prepare for the following changes:
- The way the online VAT return system is presented to the user
- Online filing via XML software will cease to be available from 8 April 2021, and
- Businesses that pay by direct debit will be asked to ensure that HMRC holds a valid email address in line with banking regulations
To learn more about the changes and how they could affect your business, please click here.
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