Businesses will no longer be able to use their existing Value Added Tax (VAT) online account to submit VAT returns from 1 November.
By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.
From November, businesses filing their VAT return on a quarterly and monthly basis will no longer be able to submit using their existing VAT online account, unless HMRC has agreed they are exempt from MTD.
If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business is currently keeping digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.
More information here
