What is MTD for VAT
What Is Making Tax Digital For VAT?
Making Tax Digital for VAT is the first of HMRC’s new digital programmes which they believe will improve the standard of record keeping by many businesses and so improve the accuracy of returns they make. There are two elements to the new Making Tax ...
Does MTD For VAT Apply To Me?
If you are an individual, sole trader or business (including a limited company) and you are already VAT registered, and you have VATable turnover of £85,000 or more in the 12 months ending 31 March 2019 then you come within the new MTD regime, unless ...
How Do I Know If I Am Exempt?
If you are already exempt from filing your VAT returns online then you continue to be exempt from the new regime and you do not need to reapply for exemption. Otherwise, exemption from the MTD for VAT programme is available if you meet one of three ...
If I Am Not Exempt When Do I Have To Comply With MTD For VAT?
The new regime begins on 1 April 2019, however the exact date from which you must be MTD for VAT compliant depends on what your VAT periods are: If your next VAT quarter end date is 31 March 2019, or you file monthly, you must comply with MTD from 1 ...
What Are Digital Business Records?
Under MTD for VAT, the records you are required to keep to support your VAT returns must be kept digitally in what is known as ‘functional compatible software’. This will usually be either an accounting software package of some kind or a spreadsheet ...
How Do I File My VAT Return Once I Am In MTD For VAT?
Once you are registered for MTD for VAT, you must NOT submit a VAT return using HMRC’s existing portal as it will not constitute a valid return. Instead, ‘functional compatible software’ must be used to file the VAT return with HMRC. Most accounting ...
If I Am Exempt How Do I File My VAT Returns?
If HMRC agree you are exempt from MTD for VAT then you must continue to file your VAT returns as you have been doing in the past.
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 ...