When should I sign up for Making VAT Digital?

The implementation of Making Tax Digital for VAT will affect most VAT registered businesses with turnover of above £85,000 for VAT returns starting from 1April 2019. You may be wondering when exactly to sign up for the new scheme.

 

 

Key Points 

  • MTD for some businesses has been deferred to VAT return periods starting on or after1 October 2019. such as group companies, unincorporated charities, businesses making payments on account or using annual accounting. You should have already received a letter from HMRC confirming your deferral to 1 October 2019. If not, please contact them to find out when MTD applies to you.

 

What must I do before I sign up?

 

Before you sign up you must ensure that you have MTD compatible software to submit your return, or bridging software to submit returns derived from spreadsheets or other non-compliant systems.

 

You may need to upgrade or purchase software before you sign up.

 

Importantly do not sign up to submit the current period VAT return until the previous period's return has been submitted.

 

 

Signing up early

 

Whilst MTDforVAT is compulsory for returns starting on or after 1April (1 October for deferrals), you could start earlier by joining the pilot. Just follow the link above and be careful if you have a direct debit set up (see below) as this will affect when you can sign up.

 

 

When must I sign up?

 

HMRC  say that “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.”

 

 

This makes timing important so please pay attention to the dates below and note that if you submit your last return on the old system before the due date it may extend the signing up windows. The dates below assume that you submitted your last return on the due date of the 7th and that HMRC can take 72 hours to confirm sign up so the sign up windows are at least  3 days before the due date of the return.

 

For those not deferred here is when you need to sign up:

 

Monthly VAT returns

 

The first return you must submit is the April 2019 return but only do this once the March 2019 VAT return has been submitted.         

 

Do you have a direct debit set up to pay your VAT?

 

Quarterly returns

 

See below for when your first quarterly VAT return that starts after 1st April and when you should sign up. This will depend on the date your first VAT return is under the new scheme.

 

 

My first VAT return starts on 1st April 2019 and end ends on 30th June 2019

 

Only sign up once the March 2019 return has been submitted under the old system.

 

Do you have a direct debit set up to pay your VAT?

 

 

 

My first VAT return starts on 1st May 2019 and end ends on 31st July 2019

 

Only sign up once the April 2019 return has been submitted under the old system.

 

Do you have a direct debit set up to pay your VAT?

 

 

 

 

My first VAT return starts on 1st June 2019 and end ends on 31st August 2019

 

Only sign up once the May 2019 return has been submitted under the old system.

 

Do you have a direct debit set up to pay your VAT?

 

 

Irregular Returns

 

If you have a long or short return that starts from 1 April 2019 because you are a new business or have changed your VAT quarter then  ensure that you:

 

 

 

What do I do after I sign up?

 

Once signed up HMRC will send you a confirmation email within 72 hours. Do not submit your VAT Return until you receive the email.

 

You can then submit your return under the new scheme.

 

If you have any questions then please contact your local office and one of our MTDforVAT advisors will be happy to help.

 

 

Please note that all details are correct at the time of writing and subject to change.

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