Doctors with VAT-registered businesses are being reminded by HM Revenue and Customs to ensure they are prepared for Making Tax Digital (MTD) before it becomes mandatory for all VAT-registered businesses from 1 April.
The requirement is part of the overall digitalisation of UK tax. Users’-reported benefits include submitting returns faster and increased accuracy confidence that they were getting tax right.
Businesses with a taxable turnover above £85,000 have already been required to follow MTD since April 2019, keeping digital records and filing VAT returns using MTD compatible software.
In July 2020 it was announced that all VAT-registered businesses must file digitally through MTD from April 2022, regardless of turnover.
Businesses or their agents need to visit the GOV.UK website and choose MTD-compatible software, keep digital records from 1 April 2022 or the beginning of their VAT period, and sign up and submit their VAT return through MTD.