HMRC update on filing returns for Non-Making Tax Digital VAT registered clients


Ewan Bolt

Ewan Bolt

Business Advisory Director and Head of Digital Solutions


In April 2021, HMRC began transitioning over traders who are not yet signed up to Making Tax Digital (MTD) for VAT, to a single database (homing both non-MTD and MTD VAT registered businesses). This process is in readiness for when those traders do sign-up between now and the mandatory date of 1 April 2022. 

It’s important to note that, HMRC have stated that when a VAT record is being transferred, and HMRC’s system doesn’t have a record of a valid email address, any direct debit mandates will be cancelled. All email address for those paying by direct debits have to be valid, in order to satisfy banking requirements, otherwise the taxpayer will have to set up a new mandate through their business account or make alternative payment arrangements.

HMRC are in the process of getting in touch with over 150,000 VAT-registered business where there is no valid email address listed but have suggested that the transferring of records will not start until July 2021.

If you would like to discuss how Making Tax Digital would work for your business, please don’t hesitate to get in touch with myself, a member of our Business Advisory team, or your usual Johnston Carmichael adviser.