From April 2022, all VAT registered businesses must file digitally through MTD, regardless of turnover. HMRC is now reminding businesses below the £85,000 threshold of the steps which they need to take to be ready. Previously only VAT-registered companies with income over £85,000 had to file their VAT returns through MTD.

Businesses need to have signed up to MTD for their first VAT return starting on or after 1 April 2022. They may not be required to make their first submission via MTD until summer 2022.