There has been lots of chat about the new penalty regime, headed our way in January 2023, for late VAT return submissions and payment of VAT, however it is easy to overlook HMRC’s recently published guidance outlining the penalties your business will face if it fails to meet the obligations under Making Tax Digital (MTD) for VAT.
- Up to £400 for every return filed without using compatible software
- £5-15 for every day that records are not kept digitally within the compatible software
- £5-15 for every day that you do not use digital links to transfer data between pieces of software.
Now is the time to ensure that you are using compatible software and have a clear process in place for keeping records and using digital links, otherwise you could be on the receiving end of multiple financial penalties, despite filing VAT returns and paying VAT on time!
