From April this year, Making Tax Digital (MTD) for VAT becomes mandatory for all VAT-registered organisations and businesses, even those below the £85,000 annual taxable supply threshold. This is the culmination of a strategy initiated in 2019 and, in effect, fully replaces the legacy process across the VAT system.

In practical terms, there are a number of groups that are likely to be impacted more significantly – and potentially caught out – by this change in regimen, most notably smaller businesses and UK subsidiaries of foreign companies. What’s important to realise from the outset is these changes are universal - no one will be permitted to retain the ‘traditional’ approach they had before.

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