With April 2019 fast approaching the details of Making Tax Digital for VAT are starting to become clearer.
The Basic line for MTD for VAT is – Any business with a taxable turnover greater than the VAT threshold (Currently £85,000) must submit MTD submissions replacing the current VAT submission via the HMRC website. This must be done through compliant software, something that will be discussed below in a separate blog in more detail.
When do businesses need to adopt MTD – assuming businesses are VAT registered with taxable turnover over £85,000 they must start submitting MTD returns on the 1st period following 1st April 2019. therefore if you VAT return ends 31st May 2019 your first MTD submission must be for the period 1st June to 31st August 2019.
Deadline for submissions – HMRC have told us that the deadline for MTD submissions will be inline with the current 1 month & 7 days.
Businesses will be required to setup an online business tax account – once setup businesses will have to sign up for MTD through this account. Clients that we currently complete VAT returns for will be signed up through our agent account and will therefore not need to complete this.