If you have an ANNA account we can calculate your VAT Return and submit it on your behalf – but your business needs to be registered for Making Tax Digital (MTD) for VAT. It’s a simple set up, and doesn’t take long to do. Read on for all the info.
What is Making Tax Digital for VAT with HMRC?
Making Tax Digital is a new way to submit your VAT to HMRC that makes tax admin more efficient, and makes it easier for taxpayers to get their tax right. VAT-registered businesses with a taxable turnover above £85,000 are now required to follow the Making Tax Digital rules by keeping digital records, and using HMRC-approved software to submit their VAT returns.
If you’re below the VAT threshold, you can voluntarily join the MTD service now.
VAT-registered businesses with a taxable turnover below £85,000 will be required to follow Making Tax Digital rules for their first return starting on or after April 2022.
How to register your business for Making Tax Digital using ANNA
Head to HMRC’s Making Tax Digital sign up page
Click 'Start sign up' at the bottom of the page
When you get to the question 'How do you currently keep your VAT records?', select 'I use accounting software'
Sign into HMRC with your Government Gateway ID and password
Enter your VAT number, date of VAT registration, and the postcode where your business is registered for VAT
Click ‘Continue’ and wait up to 72 hours for your confirmation from HMRC
HMRC explainer video
Why you need to register your business for MTD
As we mentioned above, it’s now mandatory for VAT-registered businesses earning over £85,000 to follow MTD rules. Submitting your tax return using software improves the accuracy of your records, and because your information is sent directly to HMRC from your digital records, it avoids errors and reduces the chance of your business being investigated by HMRC.
72 hour confirmation period
Once you’ve registered your business for MTD, it can take up to 72 hours to receive a confirmation message from HMRC. Please wait until 72 hours have passed before contacting HMRC regarding your MTD registration. If you need anything else in the meantime, ANNA will be happy to help.
If you’re having issues submitting your tax return via MTD, it’s a good idea to contact HMRC – here’s their contact page for VAT queries. Explain that there’s an issue between your HMRC account and your filing software, and ask if HMRC can look into your account and let you know what’s causing the problem. If you believe you’re already registered for MTD, don’t forget to mention that in your contact.
If you get an error message when you try to authorise ANNA to connect with HMRC on your behalf, it’s a good idea to double check your MTD status with your accountant. They might not have registered your business for MTD for VAT correctly – or they might have confused two HMRC accounts, if you have multiple accounts registered.