All VAT-registered businesses must use MTD for VAT for their first VAT return starting on or after 1 April 2022 although they will not have to pay VAT via MTD until July 2022.

HMRC urges businesses to use the time left to choose software, whether that is one of the simple free options available, or a more advanced product for those with more complex affairs.

Businesses should ensure that they sign up to MTD at least five days after their last non-MTD for VAT return deadline date, and no less than seven days before their first MTD for VAT return deadline date to avoid paying for their VAT twice.