Anyone still using an online account will be automatically moved to the Making Tax Digital for VAT (MTD) system with no recourse to use the old system.

The existing VAT online account can no longer be used to submit quarterly or monthly VAT returns.

There is only one exception to this filing requirement, for businesses that file annual VAT returns. They are still able to use their VAT online account and will automatically be signed up to Making Tax Digital (MTD) after 15 May 2023.

‘The only way to file these VAT returns is through Making Tax Digital (MTD) compatible software,’ HMRC said.

All businesses that have missed the deadline to sign up to MTD for VAT will now be automatically signed up to the digital reporting tool and will have to fill VAT accounts through accredited MTD software programmes.