MTD VAT notice and guidance updated

HMRC has issued clear instructions on when businesses new to Making Tax Digital (MTD) VAT from April 2022 should complete the sign-up process.

From the start of their first VAT accounting period on or after 1 April 2022, all VAT registered traders must comply with MTD VAT laws. Those who are unable to comply are eligible to seek for a digital exclusion exception.

Signing up to MTD VAT

HMRC has released a guide that explains how to determine the start date for different accounting periods.

The guidance also emphasises the best time to sign up: between the filing of the last non-MTD VAT return and the filing of the first MTD VAT return.

Those who pay by direct debit must sign up for at least:

• seven days prior to the due date of their first MTD return, and
• five days following the due date of their last non-MTD return.

For people who do not pay by direct debit, the procedure is more flexible, but they must sign up at least three days before their first MTD return is due.

Further information

HMRC has also updated the following guidance to reflect the extension of the MTD requirements to all VAT registered businesses:

• VAT Notice 700/22: Making Tax Digital for VAT