The start date for Making Tax Digital (MTD) for VAT is fast approaching. If you are a VAT-registered business with turnover in excess of the VAT registration threshold of £85,000, you will need to comply with the requirements of MTD for VAT from the start of your first VAT accounting period beginning on or after 1 April 2019. If you are VAT registered but your VATable turnover is below £85,000, you can choose whether to join in, but if you do there is no going back and once in MTD for VAT you will need to stay within MTD for VAT as long as you remain VAT registered.
Under MTD for VAT you must keep certain VAT records digitally and send your VAT returns to HMRC using software that is MTD-compatible. You will no longer be able to use HMRC’s VAT Online service to file your VAT return. Your adviser can still file your VAT returns on your behalf.
Speak to the best cumbrian accountants to find out what you need to do in order to be MTD-ready in time for the start date.