After the introduction of MTD for VAT in 2019, HMRC began sending out reminder letters to VAT registered businesses that should have already signed up to the initiative. Due to the Coronavirus pandemic and lockdown, HMRC paused the process of issuing these reminders. They have now resumed these communications as businesses resume normal activity.
HMRC estimates that 84% of mandated businesses have signed up to Making Tax Digital. This means a large number of businesses still need to sign up.
HMRC planned to begin sending sterner letters this year which would have drawn attention penalties to businesses that still had not signed up for MTD for VAT. The Coronavirus pandemic means that HMRC are now sending a further reminder letter, similar to those sent in 2019.
It is understood that HMRC are only sending out letters to businesses which they are positive should have signed up for MTD for VAT. Should your business receive a letter that you believe to have been issued in error, you should contact HMRC directly to ensure you’re correctly registered for MTD for VAT.
Are you ready for MTD for VAT?
Making Tax Digital was introduced for VAT as part of the Government’s plans to become one of the most digitally advanced tax administrations in the world. It means that VAT registered businesses will need to keep digital records and submit their VAT returns to HMRC with a digital link.
VAT registered businesses should now be keeping digital records of their sales and purchases. When the return is due, businesses must use software like BTCHub to transfer the data to HMRC.
You can read more about the basics of MTD for VAT here.
Sign up for BTCHub
To find out more about BTCHub and why our customers love it, click here.
To speak to a friendly consultant about signing up for BTCHub, call 0345 241 5030 or email sales@btcsoftware.co.uk
