twitter

linkedin

01223 810100

CLIENT LOGIN

SIGN UP FOR NEWS

MENU menu

Close close menu

CKLG BLOG

 

PAST POSTS menu

Close close menu

Category
Search by year

Avoid penalties – Making Tax Digital (MTD) compliance

23.06.2022

Business

Avoid penalties – Making Tax Digital (MTD) compliance 

This week HMRC will be sending email reminders to all VAT-registered businesses to remind them that they will now need to keep digital records, sign up to MTD and file all their future VAT returns using the MTD-compatible software. 

 

If you do not meet HMRC requirements for MTD then there will be penalties for non-compliance. 

There is a new £400 per return penalty if you file a return but do not use functional compatible software. 

 

Also, additional penalties if the business does not keep its records digitally. HMRC may charge you a penalty of between £5 to £15 for every day on which the business does not meet that requirement. 

 

Key extracts from HMRC guidance include: 

You must file your VAT return using functional compatible software 

Functional compatible software means a software program, or set of software programs, products, or applications (apps) that can: 

You must keep records digitally 

You must keep some records digitally within your functional compatible software. This is known as your ‘electronic account’. Your electronic account must contain: 

All transactions must be contained in your electronic account, but you do not need to scan paper records like invoices and receipts. 

See: Compliance checks: How to avoid penalties for Making Tax Digital for VAT – CC/FS69 - GOV.UK (www.gov.uk) 

 

Please contact our business services team if you need any assistance with compliance, or moving onto compatible software. 

PAST POSTS