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MTD and the cloud
If your business is VAT registered, you must submit your VAT returns digitally, using approved HMRC software. When Making Tax Digital (MTD) first came into force, HMRC allowed businesses additional time to put in place digital links.
This soft landing came to an end in April 2021. Since then, HMRC has been issuing penalties for not keeping complete and ‘adequate’ digital records for VAT returns – which means copy and paste data is no longer sufficient.
Additionally, from 1 April 2022, many more businesses need to comply with digital reporting requirements. If your business is registered for VAT, regardless of turnover you MUST sign up for MTD.
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