Making Tax Digital for VAT

As we have outlined in previous articles, if you run a VAT-registered business with taxable turnover above the VAT registration threshold (currently £85,000) you will be required to keep digital VAT records and submit your VAT returns using Making Tax Digital (MTD) compatible software for all VAT periods starting on or after 1 April 2019.

Even though it is compulsory for businesses who fall into the criteria outlined above to comply with the requirements of MTD for VAT, it is necessary to sign-up with HM Revenue and Customs before a return can be filed under MTD for the first time.

There are specific sign-up windows depending on a businesses’ VAT periods & whether VAT payments are made via Direct Debit or not. For businesses filing quarterly returns, the relevant sign-up windows are as follows:

Quarter Ends: Mar/Jun/Sept/Dec

First mandated period: Quarter ending 30 June 2019

If you do not have a direct debit set up, you can sign up between 9 May and 4 August 2019.

If you do have a direct debit set up, you can sign up between 15 May and 29 July 2019.

Quarter Ends: Apr/Jul/Oct/Jan

First mandated period: Quarter ending 31 July 2019

If you do not have a direct debit set up, you can sign up between 9 June and 4 September 2019.

If you do have a direct debit set up, you can sign up between 15 June and 28 August 2019.

Quarter Ends: Feb/May/Aug/Nov

First mandated period: Quarter ending 31 August 2019

If you do not have a direct debit set up, you can sign up between 9 July and 4 October 2019.

If you do have a direct debit set up, you can sign up between 13 July and 26 September 2019.

Businesses can sign up to file earlier VAT returns under MTD if they wish, but once a business has signed up they must submit all of their subsequent VAT returns using MTD compatible software. Therefore, you should not sign up until you know that you have suitable software in place.

Once you are ready to sign up, go to https://www.gov.uk/guidance/sign-up-for-making-tax-digital-for-vat#sign-up-your-business and click on “Sign up your business for making tax digital for VAT.” You will need your existing Government Gateway user ID and password.

We will be happy to help with anything to do with MTD for VAT, be it signing up, choosing & using compatible software or guidance on what records must be kept digitally going forward.

If we already prepare your VAT returns for you then rest assured that we have compatible software in place & have already signed several clients up for MTD & successfully filed their VAT returns using compatible software.

If you would like to speak to someone about MTD for VAT, please contact us on 01246 274121 or email mtd@mitchellsaccountants.co.uk