MTD for VAT cheatsheet

MTD for VAT is fast approaching. This cheatsheet shows some helpful information and resources that should assist a smooth transition.

Who has to register and what records do you need to keep:

From April 2019 VAT registered businesses and organisations with taxable turnover above the VAT threshold of £85,000 will be required to:

    • Maintain their accounting records digitally in a software product or spreadsheet. Maintaining paper records will cease to meet the legal requirements in tax legislation.
    • Submit their VAT returns to HMRC using a functional compatible software product that can access HMRC’s API (Application Program Interfaces) platform.

The requirements do not apply to VAT registered businesses with taxable turnover below the VAT threshold (eg, those that have registered voluntarily).

What does this mean in practice:

  • You must be doing your book keeping in a package. Ideally a cloud package like Xero, Quickbooks Online, or Freeagent. Or on the desktop with MTD enabled software like Sage 50. You must then use this software to submit your returns.
  • You must register with HMRC for MTD VAT. This is a new requirement so everyone must do this.
  • You must configure your software to use the MTD portal.

What are the key dates?:

We recommend that assuming you have suitable software you take action the day after the submission of your last non MTD VAT return. This will give you 3 months to ensure you have registered with HMRC and switched your software to use the new system.

  • March/June/September/December VAT periods
    • First mandatory VAT period: 1st April to 30th June 2019
    • Deadline for first MTD VAT return: 7th August 2019
    • Take action date: 8th May 2019
  • April/July/October/January VAT periods
    • First mandatory VAT period: 1st May to 31st July 2019
    • Deadline for first MTD VAT return: 7th September 2019
    • Take action date: 8th June 2019
  • May/August/November/February VAT periods
    • First mandatory VAT period: 1st June to 31st August 2019
    • Deadline for first MTD VAT return: 7th October 2019
    • Take action date: 8th July 2019

How to register with HMRC:

HMRC have published a handy video on Youtube to show how to register with HMRC:

HMRC MTD VAT Video

How to switch your software to using MTD:

We will Publish seperate articles on this as the software vendors publish information.

If you need more information please get in touch: Contact Us

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