MTD for VAT is due to go live from 1 April 2019. Many people are asking what this means to them and their business.

Is your business registered for VAT?

If your business is not VAT registered (and doesn’t need to be VAT registered), MTD does not currently apply to you, and you do not need to take any action

Is your business registered for VAT, but has turnover below the VAT threshold (£85,000)?

If you are registered for VAT but your annual turnover is below the current VAT threshold of £85,000, then you do not need to register for MTD VAT. You can continue to file VAT returns under the old system.

You can opt to voluntarily start operating MTD, but it should be noted, that once you have joined MTD you cannot go back to filing VAT returns under the old system.

Is your business registered for VAT, and has turnover above the VAT threshold (£85,000)?

If you are registered for VAT and your annual turnover is above the current VAT threshold of £85,000, then you will need to comply with the new MTD for VAT rules from 1 April 2019. The new rules will apply from your first VAT period starting on or after 1 April 2019, so if your VAT quarter is 31 March the first return you need to file under the new rules will be for the quarter ending 30 June 2019.

I need to comply with MTD and 4M Accountancy process and file our business’s VAT returns. Do I need to take any action?

Our in-house software is MTD compliant for VAT. You will need to authorise us to file MTD VAT returns on your behalf and will receive an e-mail from HMRC after 1 April 2019, with details of how to do this. You do not need to take any further action

I need to comply with MTD and process vat returns for my business. What do I need to do?

You will need to:

  • Ensure that you are using MTD compatible software from 1 April 2019
  • Sign up for Making Tax Digital under gov.uk/use software to submit your tax returns. We recommend that this is done after 1 April 2019 and after your last VAT return has been filed under the old system.

If you would like any further information about MTD for VAT, and how it affects your business, please contact either Tamara Spencer or Rebecca Hamilton at 4M Accountancy.

E: [email protected]

E: [email protected]