From April 2022, all UK VAT registered businesses need to keep records digitally and submit VAT returns to HMRC using MTD-compatible software.
The ultimate objective for MTD has three important distinctions:
Bank transactions and other financial information will flow automatically into people’s digital tax account, whether or not they declare that income or those expenses. Submission will need to be made at least once per quarter.
Submissions will need to be filed from within accounting software, not typed into HMRC website.