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 1 April 2019. You may be wondering when exactly to sign up for the new scheme.
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.
For those not deferred here is when you need to sign up:
Do you have a direct debit set up to pay your VAT?
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?
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.
Please note that all details are correct at the time of writing and subject to change.