From the 1 April 2022 all VAT registered charities, in line with other VAT registered businesses will be within the scope of Making Tax Digital (MTD) for VAT.
Currently only VAT registered charities and businesses which exceed the threshold of £85,000 are required to follow the MTD rules.
This is a big change for small VAT registered charities.
They will be required to keep their VAT records digitally and send their VAT returns using MTD-compatible software.
It is not yet clear if they will also have to follow the digital links requirement from this date or will have a soft landing period before digital links became mandatory, as the first set of businesses.
If this affects you our team will be happy to discuss it with you to ensure you will be ready to comply with these rules, as well as help you take advantage of some of the opportunities of moving to digital records keeping.