About 1.1 million businesses with taxable turnover below the £85,000 VAT registration threshold are voluntarily registered, generally to enable them to reclaim VAT on expenditure.
Businesses with taxable turnover above £85,000 have had to comply with the MTD rules since April 2019.

From their first VAT period starting after31 March 2022, voluntarily registered businesses and landlords will have to use third-party software to submit VAT returns directly to HMRC’s MTD system using digital links. An important benefit – for businesses and HMRC –is that digital record keeping reduces the scope for errors. Businesses that cannot go digital can apply to continue using non-digital means to submit VAT returns.