MTD Deadline Less Than One Month To Go
Businesses with a VAT period starting on 1 April 2019 will be required to submit their first quarterly VAT return to HMRC using MTD compatible software by 7 August 2019. If paying by direct debit, they are advised to register for MTD by Friday 26 July. If not paying by direct debit, they must register at least 3 days before their VAT return is due.
It is important to remember that businesses must physically sign up to MTD. They are not automatically transitioned across once their mandation date has passed.
At the moment around 10,000 businesses are registering for MTD every day. As one might expect the VAT helpline is experiencing a significant increase in calls. We would therefore recommend signing up as soon as possible should you experience any issues in the process.
The MTD rules became law for VAT periods starting on or after 1 April 2019 and require VAT-registered businesses with taxable turnover over £85,000 to keep their VAT records digitally and to submit their VAT return direct from their MTD-compatible software.
HMRC expects MTD to reduce tax lost due to errors, thanks to the improved accuracy that digital records provide and the fact that information is sent directly from software to HMRC. The latest tax gap figures showed avoidable mistakes cost taxpayers more than £9.9 billion last year – £3 billion attributable to VAT alone.
If you require any assistance with MTD please contact your client manager at MHA Moore & Smalley. Alternatively, please email firstname.lastname@example.org.