In prepation for MTDfVAT you will have seen correspondence and press releases from HMRC regarding Making Tax Digital for VAT (MTDfVAT).

Background info

• The following YouTube video contains details of how MTD will affect you: https://www.youtube.com/watch?v=HSHbDjWZl3w&feature=youtu.be
• Further information on how to sign up can be found in the following link: https://www.gov.uk/guidance/use-software-to-submit-your-vat-returns

Timing Considerations 

If you are one of the many businesses required to follow the rules of MTDfVAT then it is likely that you have already selected your MTD compatible software and you are now required to sign up for MTDfVAT via gov.uk.  When signing up for MTDfVAT you will need to carefully consider the timing of this, it is important to note the following,

• Businesses that pay VAT by Direct Debit (DD) cannot sign up in the 5 days after the filing deadline of the final non MTD VAT return (24 hours if not paying by DD) or in the 7 working days before the filing deadline of the first mandatory MTD VAT return.
• HMRC will send you a confirmation email within 72 hours of signing up. Do not submit a VAT Return until you receive the confirmation email.

HMRC recommend the best time to sign up to allow a smooth transition is as follows (if you are one of a small number of businesses included in the deferral group then these dates will differ):

• Monthly VAT returns - 15^th May to 28^th May - First MTD return for month ending 30 April 2019 due 7 June 2019 (or 31 May 2019 if do not get extension)
• Quarterly returns ending June - 15^th May to 23^rd June - First MTD return for quarter ending 30 June 2019 due 7 August 2019 (or 31 July 2019 if do not get extension)
• Quarterly returns ending July - 17^th June to 23^rd July - First MTD return for quarter ending 31 July 2019 due 7 September 2019 (or 31 August 2019 if do not get extension)
• Quarterly returns ending August - 15^th July to 22^nd August - First MTD return for quarter ending 31 August 2019 due 7 October 2019 (or 30 September 2019 if do not get extension)

Don't forget...

It is important to remember that once you’ve signed up to HMRC’s MTDfVAT, your VAT return must be submitted via software using MTD from then onwards. VAT submissions from businesses signed up to MTD will no longer be accepted using the ‘old’ Government Gateway or HMRC portal.

Before you can send VAT returns you will need to authorise your software.  Your software provider will issue you with guidance on how to do this.

Need further assistance?

If you would like Dains to complete the sign-up process on your behalf, then please contact your usual Dains representative for further information on the cost of this service or call 0845 555 8844 or simply complete our enquiry form and we will get in touch.