HMRC has reminded businesses that file VAT returns annually that the online VAT filing portal will close from Monday 15 May 2023.
The VAT portal closed to standard quarterly filers on 7 November 2022, but was kept open for a longer period for those who file annual returns.
In emails to businesses and tax agents, HMRC urged all VAT registered businesses to use Making Tax Digital for VAT (MTD for VAT) compatible software to keep VAT records digitally and file VAT returns.
Following the closure of the portal, businesses that file VAT returns annually will no longer be able to use their VAT online account and instead must use compatible software to file future VAT returns.
HMRC said that businesses that fail to do so may have to pay a penalty. If a business is already exempt from filing VAT returns online or if it is subject to an insolvency procedure, it is automatically exempt. Business owners can apply for an exemption if it’s not reasonable or practical for them to use computers, software or the internet to follow the MTD for VAT rules.
Kevin Parsons, managing director of Cooper Associates Accountants, said:
“All VAT registered clients have already had to change their bookkeeping systems due to Making Tax Digtal. At Cooper Associates Accountants we have supported hundreds of clients as they switch to a computerised software package, which brings a huge number of benefits.”
Please contact Cooper Associates Accountants by calling 01823 218550 or email enquiry@caa-ltd.com if you would like further information or advice.
