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There is only one week left to prepare for Making Tax Digital (MTD) for VAT-registered businesses as it becomes mandatory on April 1.

MTD was set up to help taxpayers get their tax returns right by reducing common mistakes as well as saving time managing their tax affairs and is a key part of the overall digitalisation of UK tax.

VAT-registered businesses that have not yet signed up to MTD for VAT should do so now. All VAT-registered businesses must use MTD for VAT for their first VAT return starting on or after April 1, 2022. Businesses should use the time left to choose the software that is right for them, whether that is one of the simple free options available or a more advanced product for those with more complex affairs.

Evidence shows MTD is succeeding in its central aims of reducing errors, while also making it faster to prepare and submit returns and boosting productivity for businesses. New research, conducted by HMRC and peer-reviewed by independent academics, shows MTD is likely to have generated increased revenue by reducing errors in both 2019 and 2020.

To sign up to MTD VAT, businesses need to:
Step 1: Visit GOV.UK and choose MTD-compatible software
Step 2: Keep digital records starting from April 1, 2022 or the beginning of their VAT period
Step 3: Sign up and submit their VAT Return through MTD

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