In July 2020, HMRC set out the roadmap for the further rollout of Making Tax Digital (MTD) to more businesses and taxes.
This included the expansion of mandatory MTD for VAT to those VAT registered-businesses with income below the VAT threshold, to come into effect from their first VAT period starting on or after 1 April 2022.
The Budget yesterday (3rd March 2021) announced that the Government will shortly introduce primary legislation to deliver on this commitment.
Whilst around a quarter of all businesses impacted by this measure have already joined MTD voluntarily, legislating for this change brings nearly 700,000 additional VAT registered businesses within the scope of MTD for VAT from April 2022.
Luckily Synergy is already one of only 89 out of around 400 pieces of software recognised as MTD compliant by HMRC that implements the full Making Tax Digital for VAT API, and so can provide full support for any size of business from a single user to a multi-national.