HMRC has reminded businesses that file VAT returns annually that the online VAT
filing portal will close from 15 May 2023.
The VAT portal closed to standard quarterly filers on 7 November 2022, but was
kept open for a longer period for those who file annual returns.
In emails to businesses and tax agents, HMRC urged all VAT registered businesses
to use Making Tax Digital for VAT (MTD for VAT) compatible software to keep VAT
records digitally and file VAT returns.
Following the closure of the portal, businesses that file VAT returns annually
will no longer be able to use their VAT online account and instead must use
compatible software to file future VAT returns.
HMRC said that businesses that fail to do so may have to pay a penalty.
If a business is already exempt from filing VAT returns online or if it is
subject to an insolvency procedure, it is automatically exempt. Business owners
can apply for an exemption if it's not reasonable or practical for them to use
computers, software or the internet to follow the MTD for VAT rules.
Internet link: GOV.UK