VAT-registered businesses must use Making Tax Digital compatible software for their VAT returns from 1 November 2022.

By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns.

If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check their software is MTD compatible and sign up for MTD before filing their next return.
 

More information and links to guidance and HMRC webinars here.