Key upcoming dates Making Tax Digital for VAT

From January 1st 2021

When the UK left the EU, new rules came into effect that change how goods sold to and received will be treated. Although many overseas sellers joined Making Tax Digital for VAT in October 2019, the change to import VAT rules may affect further businesses selling to UK customers.

March 31st 2021

The soft-landing period ends for those businesses who joined in the first wave of Making Tax Digital for VAT. That means that from April 1st, all digital links must be in place and submissions must be made using Making Tax Digital compliant software, to check which software is compliant, click here.

From April 2021

Although small businesses have until April 2022 to join Making Tax Digital for VAT, HMRC has also announced that the old VAT100 system will be transitioned over to Making Tax Digital over the coming months. The practical implication of that transition is that the old VAT100 method to file returns will become unavailable and Making Tax Digital for VAT software will be necessary for any VAT registered business.