MTD for VAT – Sign up Time Frame
HMRC have updated their guidance changing the MTD sign up window for those businesses who pay their VAT via direct debit.
Previously HMRC prohibited the registration for MTD 15 working days before and 5 working days after the direct debit date. This meant that some months there was potentially only a window of one or two days to be able to register. This posed a real problem for businesses who file monthly VAT returns.
The good news is that HMRC have now updated their guidance and the window in which business cannot sign up to MTD has been greatly reduced. Businesses that pay VAT by Direct Debit now cannot sign up in the seven working days leading up to, or the five working days after sending a VAT return.
Please remember all businesses must register for MTD and it is not an automatic transfer from the old system to MTD at the mandation date.
If you would like to discuss this in further detail please contact us on 01772 821 021.