Does my business have to be MTD compliant and when?
Over 96% of businesses affected by MTD need to start following the rules from the beginning of their first VAT period starting on or after 1 April 2019.
This includes businesses whose revenue exceeds the £85,000 VAT threshold during the year.
What if you exceed this threshold once? It’s worth knowing that once you’ve gone over the threshold, you’ll always be required to follow the rules for MTD, unless you deregister from VAT.
The following could wait until 1 October 2019 before they need to follow the rules:
- Trusts
- ‘Not for profit’ organisations that are not set up as a company
- VAT divisions
- VAT groups
- Local authorities
- Public corporations
- Traders based overseas
- Those required to make payment on account
- Annual accounting scheme users
The following have until April 2022.
- Government departments
- NHS Trusts
What does it mean for businesses?
The new VAT rules apply to most affected businesses from 1 April 2019, and you must:
- Ensure you have MTD for VAT compliant software.
- Start maintaining digital business records for the purposes of VAT.
- Sign up with HMRC for MTD for VAT.
- Start submitting your VAT Returns through your compliant software.