You will have been filing VAT returns using MTD compatible software for at least 18 months now, as most VAT registered traders had to enter the MTD regime from the first VAT period starting on or after 1 April 2019.
When you fire-up your MTD software to submit VAT returns for the December 2020 quarters you may receive a puzzling error message. Check whether you need to reauthorise your MTD software, which may require a two-step verification process.
The requirement to reauthorise MTD software at least every 18 months is an HMRC security demand. Some software packages require a reauthorisation more frequently.
On 21 July 2020 the Government announced the mandation dates for MTD for the rest of the VAT-registered population (1 April 2022) and for businesses and landlords who pay income tax (6 April 2023). These dates will soon roll-by, so is wise to have a plan as to how to get all clients on board the MTD train.
HMRC has updated its communication pack for these new start dates, which includes materials we can share with clients, in case they don’t believe us about the MTD requirements.Written by the Tax Advice Network