Have you checked your Making Tax Digital for VAT sign up date?

Sign up on a blue box with a black outline with a hand nearly clicking the button

Have you checked your Making Tax Digital for VAT sign up date? If you are a business that has to comply with the new system, then make sure you know when your first VAT return for Making Tax Digital is due so you can be prepared. Does your business need to follow the rules from April or October?

Most VAT registered businesses with a taxable turnover above £85,000 must follow the rules for Making Tax Digital for VAT. This means you’ll need to:

  • keep digital VAT records
  • sign up for Making Tax Digital for VAT
  • use software compatible with Making Tax Digital to submit VAT Returns

 

Who must follow the rules from 1 April 2019?

You must use software to keep digital VAT records from your first VAT Return period starting on or after 1 April 2019 if your business:

  • has a taxable turnover over £85,000
  • is not in the deferral group

You are required to sign up for Making Tax Digital at least one week before your VAT Return is due.

 

Who must follow the rules from 1 October 2019?

You might be in the deferral group and must use software to keep digital VAT records from your first VAT Return period starting on or after 1 October 2019 if your business:

  • has a taxable turnover over £85,000
  • is part of a VAT group or VAT division
  • is a trader based overseas
  • is a trust
  • is a not for profit organisation that is not set up as a company
  • uses the annual accounting scheme
  • is a local authority
  • is a public corporation
  • has to make payments on account
  • uses the VAT GIANT service

HMRC will send you a letter to tell you that you’re in the deferral group. As before you are required to sign up for Making Tax Digital at least one week before your VAT Return is due.

 

Can I apply for an exemption?

There is no need to apply for an exemption if either:

  • you’re already exempt from filing VAT Returns online
  • your business’s taxable turnover is below £85,000

 

However, you can apply for an exemption if you:

  • cannot use computers, software or the internet because of your age, a disability or where you live
  • or your business is subject to an insolvency procedure
  • object to using computers on religious grounds

You can get more information on how to apply for an exemption on the HMRC website.

 

Sign up

If you have not yet signed up and are a business that is required to do so, then either you or your accountant should do this as soon as possible. Find out how on the HMRC website.

Businesses that currently 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.

 

Further information

If you found this information useful you may also want to check out the following:

Are you ready for Making Tax Digital for VAT?

10 tips for managing cash flow

Reducing your risk of corporate tax evasion

 

MRA help individuals, businesses and families achieve the best quality of life they can with the resources they have. MRA specialise in corporate solutions, cash-flow analysis, taxation, debt management, savings and investments, lifestyle planning and much more.

Business Consultants based in East Sussex we service clients across the South East, Sussex and Kent, including smaller towns such as Ashford, Battle, Bexhill, Bodiam, Brighton & Hove, Cranbrook, Crowborough, Eastbourne, Hailsham, Hastings, Heathfield, Herstmonceux, Lewes, Mayfield, Newhaven, Rye, Seaford, Sevenoaks, Tenterden, Tonbridge and Tunbridge Wells.