Making Tax Digital Update

Making Tax Digital ( MTD ) for VAT is almost upon us. It is effective from the first VAT return starting on or after 1st April 2019, for those VAT registered business with a turnover in excess of the £85,000 compulsory registration threshold. Businesses should now be planning to sign up with HMRC in order that they can comply with the new requirements.

Once signed up, HMRC will expect the next VAT return due to be submitted under MTD, so it is vital to sign up at the correct time.

Do not sign up to submit the current period VAT return until the previous period’s VAT return has been submitted.

The following assumes that previous VAT returns have been filed on time, and are up to date. The sign up process is set into 3 stagger dates, and it is assumed here for this notice purpose that the business does not want to sign up for the pilot submission of VAT returns. If you do want to sign up for the pilot submissions ( ie submitting the VAT return under MTD before it is necessary ) then please speak to our office.

  1. For the first mandated period covering the 1st April to 30th June 2019 VAT return, then only sign up once the March 2019 return has been submitted. If you do not have a direct debit set up, then you should sign up between 8th May and 4th August 2019. If you do have a direct debit set up, then you should sign up between 15th May and 17th July 2019.
  2. For the first mandated period covering the 1st May to 31st July 2019 VAT return, then only sign up once the April 2019 return has been submitted. If you do not have a direct debit set up, then you should sign up between 8th June and 4th September 2019. If you do have a direct debit set up, then you should sign up between 15th June and 15th August 2019.
  3. For the first mandated period covering 1st June to 31st August 2019 VAT return, then only sign up once the May 2019 VAT return has been submitted. If you do not have a direct debit set up, then you should sign up between 8th July and 4th October 2019. If you do have a direct debit set up, then you should sign up between 13th July and 16th September 2019.
  4. For monthly VAT returns, the first mandated period will be for the VAT return to 30th April 2019. Only sign up once the March 2019 VAT return has been submitted. If you do not have a direct debit set up, then you should sign up between 8th May and 4th June 2019. If you do have a direct debit set up then you can only sign up on either the 15th or 16th May 2019.

 

 

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