New guidance sets out how businesses should submit their VAT returns if they are exempt from using compatible software for making tax digital (MTD) for VAT.
If a business applied for an exemption, HMRC’s confirmation letter will state whether it needs to complete a paper or an online return using the VAT online account.
A business subject to an insolvency procedure will have to submit paper returns unless it has a company or individual voluntary arrangement, in which case it can choose to send a paper return or use the online account.
HMRC states that a business that has deregistered for VAT must use their online VAT account for their final return.
