As of Tuesday 1st November, you will no longer be able to log in and use your old VAT online account to file quarterly or monthly returns.
Businesses with annual VAT bills will be able to file them online for at least two more years, until May 15 2023.
In order to comply with the new tax code Making Tax Digital, VAT-registered businesses must now use MTD compatible software and keep their VAT records digitally.
Those who do not sign up for MTD and file their VAT returns through the Backward-compatible software may face penalties. The best way to avoid such penalties is to start using MTD now.
In addition to file your VAT returns electronically using Plug-compatible software such as FreeAgent, don’t forget that you must also sign up for MTD.