Skip to content
Search
AI Powered
Latest Stories

Less than one week to go for mandatory MTD

Businesses have less than a week to prepare for Making Tax Digital (MTD) for Value Added Tax (VAT) becoming mandatory for VAT-registered businesses on 1 April, HM Revenue and Customs (HMRC) said Monday.

All VAT-registered businesses must use MTD for VAT for their first VAT return starting on or after 1 April 2022.


HMRC revealed that nearly 1.6 million taxpayers had joined MTD for VAT as of December 2021 with more than 11 million returns successfully submitted. Around a third of VAT-registered businesses with taxable turnover below £85,000 have voluntarily signed up to MTD for VAT ahead of April 2022.

“Businesses using MTD are saving time on their tax affairs, streamlining their processes and boosting their productivity as a result,” Lucy Frazer, Financial Secretary to the Treasury, commented. “Our first move towards a modern, digital tax service – MTD makes it easier for businesses to get their tax right first time.”

HMRC claimed that 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 through reducing errors in both 2019 and 2020.

The agency urged the businesses to 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.

There are a range of compatible software products available for MTD for VAT, allowing businesses to choose which tools they use to run their business and tax affairs. A list of software compatible with MTD for VAT, including free and low-cost options, can be found here.

Agents can sign up on behalf of a business, although businesses remain responsible for meeting their VAT obligations. Those who do not join may be charged a penalty for failure to do so.

Some VAT-registered businesses may be eligible for an exemption from MTD, if it is not reasonable or practicable for them to use digital tools for their tax. If a business has previously been granted an exemption for VAT online filing, this will carry over to MTD VAT requirements. More information on whether an exemption may apply can be seen here.

Since April 2019, businesses with a taxable turnover above £85,000 have already been required to follow MTD. In July 2020, it was announced that all VAT-registered businesses must file digitally through MTD from April 2022, regardless of turnover.

More for you

AG Barr welcomes Dino Labbate as new Chief Commercial Officer

AG Barr welcomes Dino Labbate as new Chief Commercial Officer

Dino Labbate has been announced as the new Chief Commercial Officer at A.G. BARR plc, the branded multi-beverage business with a portfolio of market-leading UK brands, including IRN-BRU, Rubicon, FUNKIN and Boost.

Dino takes up the role from today, 20 January 2025, having spent seven years at Britvic plc, most recently as GB Commercial Director for Hospitality. With previous experience at Kraft Heinz, Burton’s Biscuits and Northern Foods, Dino brings a wealth of FMCG insight and experience across all channels of the food and drink industry.

Keep ReadingShow less
Surge recorded in whole food sales

iStock image

Surge recorded in whole food sales

Brits are increasingly leaning towards cooking from scratch and are ditching ultra processed food, thus embracing a much simpler approach to their diet, a recent report has stated.
According to a recent report from John Lewis Partnership released on Friday (17), supermarket Waitrose has reported that it’s back to basics for many in 2025 due to a growing awareness around ultra processed foods, with many turning away from low-fat, highly processed products in favour of less-processed, whole food ingredients.
Whole milk and full-fat Greek yogurt sales are up 11 per cent and 21 per cent compared to skimmed milk and Greek style yoghurt a year ago.
Block butter sales are up by +20 per cent as compared to dairy spreads while brown rice is seeing +7 per cent more sales as compared to white rice.
The report adds that sourdough bread sales are up by +20 per cent as compared to white bread while full fat Greek yoghurt recorded +21 per cent more sales than Greek style yoghurt.
Over the past 30 days, searches on Waitrose website whole food searches soared with ‘full fat milk’ and ‘full fat yoghurt’ skyrocketing 417 per cent and 233 per cent.
The shfit reflects the wider growing awareness of effects of ultra-processed foods, thanks in no small part to Dr Chris van Tulleken’s bestselling book Ultra-Processed People and its continued momentum in 2024 and into 2025.
His eye-opening, rigorously researched account of ultra-processed foods and their effect on our health turned many people towards cooking from scratch, with unprocessed or minimally processed ingredients.

Maddy Wilson, Director of Waitrose Own Brand comments, “There’s been a lot of bad press around so-called ‘healthy’ products which aren’t nutritious and don’t taste great, however the growing awareness of ultra processed food in our diets has seen many customers seeking the basics and embracing a much simpler approach to their diet.”

Waitrose Food & Drink report released last year highlighted that 54 per cent of those surveyed proactively avoid processed foods.

Keep ReadingShow less
Hinckley c-store ordered to close down

Image from Leicestershire County Council

Hinckley c-store ordered to close down

A convenience store in Hinckley, which sold illegal cigarettes to undercover Trading Standards officers on eight occasions and had more than 1,800 packets of illegal tobacco seized during four enforcement visits, has been closed down for three months.

As informed by Leicestershire County Council, Easy Shop in Regent Street has been ordered to remain closed until April 15 by Leicester Magistrates Court, following a joint operation by Leicestershire County Council’s Trading Standards service and Leicestershire Police. The orders were issues last week.

Keep ReadingShow less
Peterborough shop “closed” to tackle organised crime

Image from Cambridgeshire Constabulary

Peterborough shop “closed” to tackle organised crime

A city centre convenience store in Cambridgeshire has been closed down after police found "illicit" items including Viagra tablets, illegal tobacco and more than £14,000 in cash from the premises.

About 683,400 cigarettes, 37.45kg of hand rolling tobacco, and 35 cigars were seized by the police from International Food Centre in Lincoln Road in Peterborough late last year. The closure order was served on the shop and flat above on Dec 31following an application to Huntingdon Magistrates' Court.

Keep ReadingShow less
Champagne being poured into champagne glasses
Photo: iStock

Champagne shipments hit by gloomy consumer mood in 2024, producers say

French champagne shipments fell by nearly 10 per cent last year as economic and political uncertainties hit consumers' appetite for the sparkling wine in key markets such as France and the US, the producers association said.

Producers had called in July for a cut in the number of grapes harvested this year after sales fell more than 15 per cent in the first half of 2024. Full year shipments were down 9.2 per cent from 2023 at 271.4 million bottles, the Comite Champagne (Champagne Committee) said.

Keep ReadingShow less