HMRC requires businesses with VATable sales above the VAT threshold to file VAT returns through MTD for VAT. From 1st April 2022, all VAT-registered businesses will be required to sign up. If your VATable sales are below the VAT threshold, you can choose to sign up for MTD for VAT now.
HMRC advises signing up to MTD for VAT at least one week before your VAT return is due, to make sure that everything is ready for your submission. If you’re not sure whether you need to sign up for MTD for VAT, speak to your accountant.
Preparing your accounts in FreeAgent
Before you make your first MTD for VAT submission, there are a number of things you will need to check in order to ensure that FreeAgent creates an accurate VAT return.
After your bank transactions have been imported or uploaded, you will need to explain them. Once you’ve started explaining transactions, FreeAgent’s Guess feature will attempt to explain your transactions automatically. Find out more about how to manage Guess.
By enabling bank feeds and regularly explaining your imported bank transactions, the bank balance in FreeAgent should match the balance in your online bank account. If the figures don't match, follow our guidance for addressing discrepancies.
You might have data that you need to enter from a time prior to the period covered by the VAT return that you’re filing. You should enter this data before you file your VAT return because after you file it, FreeAgent will lock earlier periods and they will no longer be editable.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
Registered in sunny Scotland No. SC316774 - One Edinburgh Quay, 133 Fountainbridge, Edinburgh, Scotland, UK EH3 9QG