HMRC chief executive Jim Harra said: ‘I’m writing to let you know that from Tuesday 1 November 2022, your clients will no longer be able to use their existing VAT online account to file their quarterly or monthly VAT returns. 

‘Businesses that file annual VAT returns will still be able to use their VAT online account until 15 May 2023.

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

‘If your clients do not sign up for MTD and file their VAT returns through MTD-compatible software, they may have to pay a penalty. The best way for businesses to avoid penalties is to start using MTD now.’

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