A brief reminder that Making Tax Digital is now in effect. It only applies to councils which are registered for VAT because they make taxable supplies such as charging for running retail outlets including tourist information centres, charging for events, charging for ‘sports facilities’, or hiring out buildings or rooms in buildings where there is an ‘option to tax’.
Councils not registered for VAT (i.e. they reclaim VAT on non-business activities and ‘exempt supplies’ on Form VAT126 under the special rules for local authorities), are not affected.
If you are VAT registered and haven’t set up MTD you will need to:
• Visit GOV.UK and choose Making Tax Digital compatible software
• Keep digital records starting from 1 April 2022 or the beginning of your VAT period
• Sign up and submit your VAT return through Making Tax Digital