Making Tax Digital

Making Tax Digital - Implications for Owners 

Owners whose racing interests are VAT registered will be required to comply with the new MTD legislation from 1 April 2022 in relation to their VAT returns, whatever they earn.

There are no exemptions or delays to the 1 April 2022 deadline for those registered under the racehorse owners VAT scheme. 

In simple terms this means that owners will either be required to use a VAT service such as the new ROA VAT Solution or use a third-party software provider to store data and communicate with HMRC (HM Revenue & Customs) electronically.  


Making Tax Digital (MTD) FAQs 

What is MTD?  

MTD for VAT is new legislation that requires all VAT registered businesses to keep their records digitally and submit their VAT Returns using MTD compatible software. Businesses affected by MTD for VAT will no longer be able to use HMRC Online Services from 1 April 2022. 

When will it be enforced?  

MTD digital VAT submission will be enforced for the first VAT return after the 1 April 2022 MTD deadline. For example, if your first VAT period after this date started on 1 May 2022, then you must keep digital records from that date and submit the VAT return using MTD compliant software.  

My Vatable turnover is less than £85,000. Am I still exempt from MTD?

The £85,000 threshold will no longer apply from April 1 2022. All VAT registered businesses must sign up, whatever they earn and this includes racehorse owners with sponsorship agreements under the VAT Scheme for racehorse owners.  Further details can be found here:

When should I sign up to MTD for VAT?  

You should sign up or authorise your VAT agent to sign you up for MTD prior to submitting your first MTD VAT return.   

If I join MTD, can I choose to leave?  

No, you cannot leave MTD unless you de-register for VAT.   

What are digital records?  

These show the link between the output and input tax in your records – as well as the output and input tax on your return. Further information can be found in  HMRC’s Notice 700/22 .  

What are the fines if I don’t follow the MTD rules?  

HMRC recognise that businesses will require time to become familiar with the new requirements of MTD. During the first year, HMRC will take a light touch approach to digital record keeping and filing penalties where businesses are doing their best to comply with the law. Businesses must continue to pay their VAT on time, as overdue payment penalties still apply.  


With owners in mind, the Racehorse Owners Association has launched ROA VAT Solution to assist racehorse owners with their digital VAT returns.

Call Davina or Glen on: 01183 385 685 or email: [email protected] to find out more

Or complete the enquiry form below: