The Making Tax Digital for VAT portal is closing. Here’s what it means for small businesses

▤ Summary

You may have recently received an email from HMRC explaining that VAT-registered businesses will no longer be able to use this gateway to file monthly or quarterly VAT returns. But MTD for VAT is an unavoidable reality, and one that, when embraced, can lead to significant benefits – including greater efficiency and huge time savings. The benefits of digital tax are also already apparent, according to Lynsey Verillo, founder of Blackbook Winery: “With Xero, the process of submitting our quarterly returns for MTD for VAT couldn’t be easier. Some small businesses are yet to comply for any number of reasons – they may have missed the reminder letters dispatched by HMRC, or don’t know which digital tools to use, or are afraid to change. If you are a sole trader or landlord already keeping digital records and used to making periodic updates to HMRC, you’ll be ready for MTD for ITSA in April 2024.

▦ Linked Companies

Xero

$1B+