Who must follow the rules from 1 October 2019
You might be in the deferral group and must use software to keep digital VAT records from your first VAT Return period starting on or after 1 October 2019 if your business:
- has a taxable turnover over £85,000
- is part of a VAT group or VAT division
- is a trader based overseas
- is a trust
- is a not for profit organisation that is not set up as a company
- uses the annual accounting scheme
- is a local authority
- is a public corporation
- has to make payments on account
- uses the VAT GIANT service
HMRC will send you a letter to tell you that you’re in the deferral group.
You must sign up for Making Tax Digital at least one week before your VAT Return is due.