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Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

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Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Making Tax Digital deadline looms for VAT businesses

4 October 2022

HM Revenue and Customs is reminding businesses that from Tuesday 1 November, they will no longer be able to use their existing VAT online account to submit VAT returns.

In less than one month, businesses who file their VAT returns on a quarterly and monthly basis will no longer be able to submit them using their existing VAT online account.

By law, all VAT-registered businesses must now sign up to Making Tax Digital (MTD) and use compatible software to keep their VAT records and file their returns. Unless they are exempt, anyone that does not comply could face a penalty.

HMRC says the aim of MTD is "to help businesses get their tax right first time by reducing errors, making it easier for them to manage their tax affairs by going digital, and consequently helping them to grow." More than 1.8 million businesses are already using the service.

If businesses do not file their VAT returns through MTD-compatible software, they may have to pay a penalty. Even if a business currently keeps digital records, they must check that their software is MTD-compatible and sign up for MTD before filing their next return.

If a business hasn't already signed up to MTD or started using compatible software, HMRC says they must follow these steps:

If a business is already exempt from filing VAT returns online or if their business is subject to an insolvency procedure, they will automatically be exempt. Businesses can check to see if they can apply for an exemption from MTD on GOV.UK.

If a business is new and is not yet registered for VAT, they will automatically be signed up for MTD while registering for VAT through HMRC's new VAT Registration Service. Registering via this online service helps new businesses to be fully compliant with MTD from day one, although they will still need to get the right software to submit their VAT returns.

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

Written by Rachel Miller.

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