HM Revenue and Customs (HMRC) is reminding Lanarkshire businesses that from November 1, they will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns.
By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.
MTD’s aim is to help businesses in Lanarkshire get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow.
More than 1.8 million companies are already benefitting from the service, and more than 19 million returns have been successfully submitted through MTD-compatible software so far.
In less than a month, Lanarkshire businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.
If firms don't file their VAT returns through MTD-compatible software, they may have to pay a penalty; even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.
Richard Fuller MP, Economic Secretary to the Treasury, said: "Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them - growing their business.
“I encourage any VAT-registered businesses still to register for Making Tax Digital to get online and sign up.”
If a business is already exempt from filing VAT returns online or if their business is subject to an insolvency procedure, they will automatically be exempt.
A company can check if they can apply for an exemption from MTD on GOV.UK if it isn't reasonable or practical for them to use computers, software or the internet. HMRC will consider each application on a case-by-case basis.
If a business is new and is not yet registered for VAT, they will automatically be signed up for MTD while registering for VAT through HMRC’s new VAT Registration Service (VRS) .
Registering via this online service not only means a faster VAT registration and improved security, but also helps new businesses to be fully compliant with MTD requirements from day one - although they will still need to get the right software to submit their VAT returns.
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