Making Tax Digital

[Alan]

I have been submitting my VAT returns electronically for many years, do I have to do something extra for MTD or do I just carry on?

 

[Scalloway]

You need to sign up for it and use appropriate software. More information here.

https://www.gov.uk/guidance/making-tax-digital-for-vat

 

[justintime]

Which software are you doing your accounts in?

 

[SteveHa]

Are you mandated to register for tax, or voluntary. In the 12 months ending with the date before the start of you VAT quarter on or after 1 April, will you trade above the registration threshold?

 

[MyAccountantOnline]

To add to what others have mentioned you may find this webinar useful -

https://register.gotowebinar.com/rt/1488469760326025729?source=Campaign-Apr-12

 

[jporter1TS]

Hi Alan,

The first step would obviously be to register to submit your VAT using MTD. Note that you must register for MTD at least 3 days ahead of your VAT submission.

If you are using commercial accounting software and you are on support with them, then you may want to contact them to see if they have a software update for MTD. That would be the simplest route.

 

[Alan]

Are you mandated to register for tax, or voluntary. In the 12 months ending with the date before the start of you VAT quarter on or after 1 April, will you trade above the registration threshold?

I am voluntarily registered for VAT and trade under the £85k VAT threshold. From what I (now) understand that means MTD doesn't apply.

Although I didn't really get an answer to the basic question, if I am already submitting VAT returns digitally through the gov interfaces and have been for years ( through approved software KashFlow ), and assume I was above £85k taxable TO, do I actually have to do something.

 

[Scalloway]

If you go over the £85,000 you need to sign up for MTD for VAT.

 

[SteveHa]

You are correct that you carry on as before as long as you are below the threshold.

As Scalloway has pointed out, above the threshold and the HMRC portal is no longer an option. You will be required to use MTD compatible software to submit.

NB. Once you are in MTD because you went over the threshold, you are in for good, even if your income subsequently drops. The only way out of MTD after you are in is to deregister,

 

[UK Contractor Accountant]

As Scalloway has pointed out, above the threshold and the HMRC portal is no longer an option.

Will HMRC actually shut the portal down and not let VAT Returns be filed if over the £85K limit.

Will the Portal actually pick up on the scenario where you have filed 3 quarterly Returns showing £75K income and then try to file the 4th quarter Return via the Portal showing £11K income?

 

[SteveHa]

I doubt that it will be shut down in the first 12 months, given the supposed "soft landing", though using the portal rather than software may still give rise to penalties despite the soft landing. My understanding is that the reason for the soft landing is to enable the transition rather than a free 12 months off.

 

[dvddarren]

Alan, being under the VAT threshold only means you don't have to register this year. Next year all VAT registered businesses will have to use MTD.

If you currently keep your own accounts digitally and just need a way of submitting your VAT returns, there is Bridging Software available. I have created a bridging app for Apple Mac users and another for iPhone/iPad that requires the user to have a spreadsheet with their VAT return data.

Regarding the shutting down of the current portal. Once registered for MTD, the old portal will not work for you as HMRC have said they work on completely different systems and your account gets moved over.