MTD FOR VAT: WHAT YOU NEED TO DO …

By 10th May 2019 Blog No Comments

Drummond Laurie Chartered AccountantsFrom 1st April 2019, the Government’s Making Tax Digital (MTD) Programme became law. As a result, businesses with a taxable turnover of more than £85,000 will be required to keep their records digitally and file their VAT returns directly from their software package, saving time and hassle for everyone.  It is the latest step on the road to a fully digital and truly 21st Century tax system.

The first step on the MTD journey was to check that your software is compatible.  Now that you have done this you may be mistaken in thinking that is the end of the journey……  Unfortunately, the journey doesn’t end there and YOU HAVE TO REGISTER FOR MTD. 

Registration is carried out via HMRC’s website  here

 

BEFORE YOU RUSH TO SIGN UP FOR MTD PLEASE CONSIDER THE BEST DATE FOR YOUR BUSINESS TO REGISTER!

If you do not have a direct debit in place you can register for MTD anytime between the day after your last VAT return under the way the old method was due and 72 hours before your first MTD VAT return is due. This may be better illustrated by way of an example;

If your first quarterly VAT submission under MTD conditions will be April/May/June you will register between the following dates:

8th May and 4th August.

The relevance of these dates is 8th May is the day after the deadline of your last VAT return under the old method and the 4th August is 72 hours before the first MTD VAT return deadline of 7th August.

If you do have a direct debit in place the period where you can register is shortened as HMRC require extra time to move your direct debit instruction over to the new MTD system.  You can only register for MTD 5 working days after the last VAT return submission deadline under the old method and 15 working days before the first MTD VAT return due date.

Again this may be better illustrated using the example above:

If your first quarterly VAT submission under MTD conditions will be April/May/June you will register between the following dates:

15th May and 17th July

The relevance of these dates is 15th May is 5 working days after 7th May deadline under the old method and 17th July is 15 working days before the first MTD VAT return deadline of 7th August.

If you would like to discuss any particular MTD queries please contact  Julie McVicar 01324 441256.

Let's Get Started: Contact Us