When do I need to register for Making tax Digital?

HM Revenue & Customs’ (HMRC) ambition is for the UK to become one of the most digitally advanced tax administrations in the world, via its initiative called Making Tax Digital (MTD).

All VAT-registered businesses with a turnover above the current VAT registration threshold (£85,000 until March 2022 under current plans) will be legally required to digitally record their books and file VAT returns using MTD-compliant accounting software.

MTD applies to VAT returns starting after 1st April 2019.

You must sign up for MTD at least one week before your VAT Return is due, and at least 24 hours after your last non-MTD VAT return was filed. Your accountant or bookkeeper may be able to do this for you if they have the right authorities in place with HMRC.

Businesses that pay VAT by Direct Debit cannot sign up in the 7 working days leading up to, or the 5 working days after their VAT Return is due.

Example of when you must register for MTD

VAT returns are quarterly, ending March, June, September and December.

The first MTD VAT return will be the one ending 30th June 2019.

VAT is paid by Direct Debit

You could sign up any time from 15th May 2019 and no later than 31st July 2019

VAT is not paid by Direct Debit

You could sign up any time, but must be registered by 31st July 2019

Once you’ve registered, HMRC will send you a confirmation email within 72 hours of signing up. You should not submit a VAT Return until you receive the confirmation email.

TaxAssist Accountants use a range of different software, including bridging software that allows us to file VAT returns based on spreadsheets. If you’d like to find out more, please contact your local TaxAssist Accountant

Date published 3 Apr 2019

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.