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How to resolve the ‘TAX_PERIOD_NOT_ENDED’ Error Code when submitting your first VAT return for MTD
27 April 2022
Summary – Your first VAT return for MTD
When submitting your first VAT Return for Making Tax Digital (MTD), the following error code can appear:
‘Error code: TAX_PERIOD_NOT_ENDED’
Typically, this happens if the relevant tax period has not yet ended, if you have selected the incorrect period to submit, or if you try to submit your VAT Return too early.
What do I do?
There are a few things you can check:
- Make sure you have calculated your VAT Return for the correct period.
To do this, in your Sage 50 Accounts software, click VAT then check the Period column for the VAT Return you are submitting.
- During the VAT submission process, when you select the Submit your period drop-down, ensure you click on the correct VAT period.
You may need to click on the drop-down arrow and then select the correct VAT period.
Making tax digital – All the changes you need to be aware of from April 2022
Under Making Tax Digital (MTD) for VAT, businesses are required to file their VAT returns electronically using accounting software and need to keep digital records of their transactions.
MTD was mandatory from April 2019 for businesses with a taxable turnover above the VAT registration threshold, currently £85,000.
In April 2021 if your business is voluntarily registered for VAT, but you are not registered for MTD, needed to make manual VAT submissions using the HMRC website portal, or register for MTD.
From April 2022, all VAT registered businesses must sign up for MTD for VAT, even if their taxable turnover is below the VAT registration threshold.
You will be required to comply with HMRC’s Making Tax Digital (MTD) rules. This includes:
- Signing up with HMRC for MTD for VAT.
- Ensuring you have MTD for VAT compliant software.
- Maintaining digital business records for the purposes of VAT.
- Submitting VAT Returns through compliant software.