All VAT-registered businesses should now be signed up to Making Tax Digital (MTD) and using MTD-compatible software to keep their VAT records and file their VAT returns.
Even if you already keep digital records, you must check you are using compatible software to file your VAT returns. There’s a full list of software compatible with Making Tax Digital for VAT, including free and low-cost options, to choose the Making Tax Digital software that’s right for your business.
If you have not signed up to Making Tax Digital, you need to do so before you file your next VAT return, other wise you could receive a penalty.
If you’re an agent you can use this step-by-step guide to sign your clients up to MTD if you have not already.