Under the Making Tax Digital initiative, businesses must keep their VAT records digitally if they do not already do so and file their VAT returns using MTD-compliant software.
HMRC has now started bringing businesses that had previously failed to register for MTD into the system.
The Low Incomes Tax Reform Group (LITRG) recommends that all unregistered businesses that still need to meet the MTD requirements act quickly now. Otherwise, they risk not being able to file their next VAT return or pay the VAT due – unless an exemption applies – as otherwise, financial sanctions are to be expected.
Source: tax.org.uk
