• Farrell & Farrell

Penalty waiver for Making Tax Digital for VAT will be removed from November 2022

Penalty waiver for Making Tax Digital for VAT will be removed from November 2022


From 1 November 2022, businesses and agents will only be able to file VAT returns using MTD for VAT compatible software.


Businesses will no longer be able to use their existing VAT online account to file their quarterly or monthly VAT returns. However, businesses that file annual VAT returns will still be able to use their VAT online account until 15 May 2023.


HMRC have stressed that penalties will come into force from November 2022 for anyone who does not use the MTD for VAT. HMRC can charge a turnover related penalty from £100 up to £400 for filing a return which is not an electronic submission (i.e. a filing through the incorrect channel penalty).


If a business is already exempt from filing VAT returns online they are automatically exempt.


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