25th July 2019
HMRC is urging businesses to register for Making Tax Digital for VAT (MTD for VAT) before the 7 August VAT filing date.
VAT registered businesses with a turnover above the VAT threshold, need to be ready to keep digital records for VAT purposes using Making Tax Digital (MTD). This means that businesses must keep their records digitally (for VAT purposes only) and provide their VAT return information to HMRC through MTD functional compatible software.
HMRC stated that ‘many of the 1.2 million businesses affected by MTD for VAT will be required to submit their first quarterly return using compliant software by 7 August’. Firms paying by direct debit must register by 27 July.
Under MTD for VAT, businesses with a taxable turnover above the VAT registration threshold (currently £85,000) must keep some records digitally, and must submit their VAT returns via an Application Programming Interface (API).
According to HMRC, around 10,000 businesses are registering for MTD for VAT every day, and more than 600,000 have signed up in total. Nearly 400,000 submissions have already been successfully made using MTD software.
Any businesses that are currently exempt from online filing of VAT will remain so under MTD. There are also provisions for those who cannot adapt to the new service due to age, disability, location or religion to apply for an exemption.
There is also a deferral group for certain entities that have until the first VAT Return period starting on or after 1 October 2019 to start using MTD for VAT. This includes businesses that are part of a VAT group or VAT division, use the annual accounting scheme or that make payments on account. If your business has a turnover under the VAT registration threshold, you are not currently mandated to use the MTD for VAT service but can opt to do so if you wish
Do you need help?
If you still need help registering or need any other help with MTD for VAT please contact us . We are ready to resolve any difficulties you may have and get you organised before the deadline.
Read our fact sheet and recent articles
Making Tax Digital for VAT factsheet.
Revenue publishes more information on Making Tax Digital.
Making Tax Digital for VAT: an update on digital links.
Making Tax Digital: where are we now?
