HMRC update: VAT Notice 700/22: Making Tax Digital for VAT
On 7th May 2021 HMRC introduced a number of updates to the VAT Notice 700/22. These updates aim to provide further clarification around digital links obligations.
Section 8 of the VAT Notice 700/22 has been updated with new examples to provide customers with more clarity about the Making Tax Digital VAT digital links requirement. The new examples take account of digital record keeping and reporting options, illustrating where information transfer must be digital and where it need not be.
HMRC have also introduced new narratives in each example which explain how the customer is compliant with the rules. They have also clarified the relationship between digital records, functional compatible software, and the ‘electronic account’ that businesses are required to maintain under the official VAT regulations.
As the soft-landing period for digital links and the digital links extension application process expired on 1st April 2021, the VAT Notice 700/22 has also been updated to reflect this.
The full VAT Notice 700/22 can be found on the HMRC website. If you require any help understanding how Making Tax Digital for VAT affects you and your business, we suggest first speaking with your finance department, or with HMRC directly, as they will be best placed to answer your questions.
If you have any questions on how to use Nolan Business Solutions’ Making Tax Digital software, please contact us via our website, via phone at 01252 560 148, or via email at support@nolanbusinesssolutions.com.
