VAT-registered businesses have less than two weeks until HMRC closes its old Making Tax Digital (MTD) portal.

From Tuesday 1 November, customers will no longer be able to access their existing VAT online account to submit their monthly or quarterly returns.

Instead, they will need to keep digital VAT records and submit returns using MTD-compatible software - unless HMRC has said they are exempt.

The aim of this new process is to make it easier and more efficient for customers to submit accurate tax returns.

Signing up for MTD and finding compatible software is now required by law, and any VAT-registered businesses not signed up in time will risk penalties.

Over 1.8 million customers are already using the service, while new businesses will be automatically signed up for MTD when registering for VAT, making them compliant from day one.

MTD will also be extended to income tax self-assessments from April 2024 and then followed by corporation tax by 2026 at the earliest.

Richard Fuller MP, Economic Secretary to the Treasury, urged businesses to sign up for MTD, saying:

"Making Tax Digital can help businesses get their tax right first time, which cuts the administration burden and frees up time for them to get on with what matters most to them - growing their business"

Talk to us about Making Tax Digital.