VAT portal will close at the end of October

From 1 November 2022 businesses will no longer be able to use their existing VAT online account to submit VAT returns.

HMRC is reminding taxpayers that from that date all VAT-registered businesses must sign up to making tax digital (MTD) and use compatible software to keep their VAT records and file their returns unless HMRC has agreed they are exempt from MTD.

More than 1.8 million businesses are already using the service and more than 19 million returns have been successfully submitted through MTD-compatible software so far according to the tax authority.

Businesses that do not file their VAT returns through MTD-compatible software may have to pay a penalty. Even if it currently keeps digital records it should check their software is MTD compatible and sign up for MTD before filing their next return.

Despite the impending deadline many businesses are more concerned...