When will Making Tax Digital (MTD) affect your businesses VAT filing?
From 1st April 2019, VAT registered businesses with a turnover above the VAT threshold of £85,000 must follow the MTD rules for VAT.
This signifies the following:
- Keeping digital VAT records
- Using MTD compatible software to submit VAT Returns
- Signing up for Making Tax Digital for VAT
Click here to find out more information on how to sign up for Making Tax Digital for VAT.
Who will be affected from 1st April 2019?
Businesses must follow the rules for MTD from your first VAT Return period starting on or after 1st April 2019. However, this is only necessary for businesses that have a taxable turnover above £85,000 and is not part of the deferral group.
Who will be affected from 1st October 2019?
This refers to businesses who are in the deferral group that are associated or part of the following:
- VAT group or VAT division
- Based overseas
- A trust
- A not for profit organisation that is not set up as a company
- Submits Annual Returns
- A Local Authority
- A Public Corporation
- Makes payments on account
- Utilises the VAT GIANT Service
If your business is in the deferral group, you must follow the rules for Making Tax Digital from your first VAT Return period starting on or after 1st October 2019.
If you’re still not sure about the Making Tax Digital rules for VAT and need further help, please use the details below to contact us.
Posted in: VAT