VAT registered charities, as any other VAT registered entities will be within the scope of Making Tax Digital (MTD) for VAT from the 1 April 2022. Previously, this applied only to VAT registered entities with exceed the £85,000 VAT threshold. This will require them to keep VAT records digitally and submit VAT returns using MTD-compatible software.
What are the requirements?
What this means in practice is that there will need to be a digital link from when a transaction is first recorded on a digital format all the way to the digital submission of the VAT return figures to HMRC.
Copying and pasting values between different accounting software will no longer be permitted.
We have worked with a number of our charity clients to identify whether they are, or will be, compliant with these new rules, as well as to propose and help implement solutions.
If you require any assistance with this please do not hesitate to contact Kerry Annand from our VAT team at kerry.annand@ct.me