Making Tax Digital for VAT

Date posted: 29th Apr 2019

MTD for VAT is finally here and as we suspected many businesses have accidentally signed themselves up too early for MTD, effectively signing up for the pilot.

As a reminder, if you are caught by MTD then the first VAT return that you are required to sign up for under MTD for VAT is the one commencing on or after 1 April 2019, unless you are on the deferred list.

As per HMRC guidance if you pay VAT by direct debit you should not sign up in the 7 working days leading up to, or the 5 working days after your VAT return is due.

If you have taxable turnover of less than the VAT threshold, then you do not need to sign up for MTD for VAT. If you have accidentally signed up for MTD when you were not caught by it, we understand that it is too late and there is no way to come out. This is in line with HMRCs initial guidance on how it would work.

If you do sign yourself up too early for MTD you have no choice but to submit electronically, however our Managed Services department are on hand to help you through the process.

When to submit if you have quarterly returns:

MTD login credentials

Initially, we understood that you would be issued with new MTD login credentials once you sign up for MTD. This is not the case. Instead, you get a notification from HMRC that your MTD application has been successful, but you continue to use the same details to make the electronic submission through your software.

For more information on Making Tax Digital see our FAQs on Making Tax Digital page

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