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The final MTD deadline is fast approaching for quarterly returns on 7th October 2019 (for quarters ending 31st August 2019), with the monthly VAT returns already been and gone on 7th June 2019.
As a reminder, you will need to submit your VAT returns using compliant accounting software, such as Xero, Quick Books, Sage or a bridging software, where you are VAT registered and have a turnover of over £85,000. If you are VAT registered but your turnover is under this, you will need to opt-out.
Signing up to MTD
- Visit Signing up for MTD for VAT (link);
- Click Sign up your business for Making Tax Digital for VAT and follow the on-screen prompts;
- When prompted, enter your Government Gateway credentials then click Sign in. If your business is not yet eligible to sign up for MTD, a message appears to advise this;
- Follow the on-screen prompts, providing any requested information;
- When you receive a verification email, click the link in the email to verify your email address; and
- Read and accept the terms of participation.
HMRC will then confirm if you can start submitting VAT Returns under MTD; this confirmation usually takes 24 hours. When submitting under MTD, businesses can continue to use their existing Government Gateway user ID and password credentials.
Once You’re Signed Up to Making Tax Digital
Once you’ve signed up to MTD, from that point onwards you must submit your VAT Returns under the new MTD system and can no longer use the Government Gateway. Before you sign up for MTD, check the following:
- The last VAT Return you want to submit under the Government Gateway has been reconciled and submitted; and
- Your VAT settings are correct.
Signing up for MTD must be done at least 5 working days after your last non-MTD VAT Return submission and at least 8 working days before your first MTD VAT Return submission.
Opting Out of MTD
If your business is VAT registered but under the turnover threshold of £85,000 in a rolling twelve-month period, you do not need to register for MTD.
You will need to log on to your HMRC government gateway account for VAT, select ‘get help with this page’ and then send them a message requesting to be removed from MTD due to turnover level. They should provide a response within two working days.
HMRC’s Light Touch
HMRC have already said they will not be raising interest and penalties in a lot of instances of non-compliance in the first twelve months of MTD. That said we still recommend doing everything you can to be compliant with the new regulations. If in doubt, and need some help please just contact us.
MTD 2.0
Making Tax Digital will be rolled out to other individuals and companies across other taxes, but we will explain more in further blog posts.
How we can help with MTD
We can of course help you with any of the above, whether that’s helping you through signing up using the steps above, or doing it for you.
We also offer software implementation and training on any of the above mentioned bookkeeping software and many others besides. We can help train you and your team to do this yourselves, be at the end of the phone to help you with any queries or we can do it all for you; depending how you want things to operate. We can also change our service offering for you as your business evolves.
If you think you need further information to make sure you don’t get caught out or find out how our specialist tax team can help you, contact Black and White Chartered Certified Accountants today, or call us on 0800 140 4644.
