MAKING TAX DIGITAL (MTD) FOR VAT – DON’T REGISTER IF YOU DON’T HAVE TO
Now that MTD is nearly upon us, the cloud based software packages have been updated and are quick to alert us to register for Making Tax Digital.
However, MTD for VAT is only mandatory for businesses over the VAT threshold for VAT periods commencing after 1 April 2019.
The period to be considered when determining whether you are over the VAT threshold of £85,000 for MTD is the year to the end of any month (ie, a rolling 12 months). When the threshold is exceeded for the first time the business must comply with MTD for VAT from the beginning of its next VAT accounting period. When MTD for VAT begins the relevant periods to consider for businesses that file quarterly are:
| VAT Stagger Group | First MTD VAT Return | Check Turnover for Period |
| Mar/Jun/Sep/Dec | Quarter ended 30 June 2019 | 12 months ended 31 March 2019 |
| Apr/Jul/Oct/Jan | Quarter ended 31 July 2019 | 12 months ended 31 March 2019 and 12 months ended 30 April 2019 |
| May/Aug/Nov/Feb | Quarter ended 31 August 2019 | 12 months ended 31 March 2019 and 12 months ended 30 April 2019 and 12 months ended 31 May 2019 |
Voluntarily registered businesses that have not opted into MTD for VAT will need to continue to monitor their turnover to establish when they need to start complying with the MTD for VAT requirements. Businesses that newly register for VAT (compulsorily) will need to consider how they will comply with the MTD for VAT requirements and will have very limited time in which to comply.