HMRC issues urgent warning to every UK business using an online account to submit VAT returns

dailyrecord.co.uk:

HM Revenue and Customs (HMRC) has issued an urgent warning to businesses across the UK, reminding them that from Tuesday, 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 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.In less than one month, 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.HMRC said more than 1.8 million businesses are already benefiting from the service, and more than 19 million returns have been successfully submitted through MTD-compatible software so far.If businesses do not 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 hasn’t already signed up to MTD or started using compatible software, they must follow these