MTD for business below VAT threshold (VAT reg.d voluntarily)

[Karimbo]

Hi

I elected to register for VAT voluntary because turnover for my business fluctuates and there were a few times when it almost went over the registration threshold but didn't.

It's not crystal clear to me whether I need to register for MTD or not. Was hoping someone could clarify.

If you run a VAT-registered business with a taxable turnover above the VAT registration threshold (currently £85,000) you are required to keep digital VAT business records and send returns using Making Tax Digital (MTD)-compatible software. The vast majority of businesses need to do this for VAT periods that started on or after 1 April 2019. Businesses with a taxable turnover below the VAT threshold can also sign up for MTD for VAT voluntarily.

Source: https://www.gov.uk/government/publi...sinesses-and-other-vat-entities-can-get-ready

I don't know if this is just me, but this could read either way, it could mean that someone in my situation doesn't need to MTD, or just saying that if you are below the threshold you can join MTD when you do a voluntary VAT registration.

I suppose it's too late now. I have VAT deadline midnight tonight, and the freeagent video says it takes 7 days to register for MTD and I can't register 7 days before/after a VAT deadline.

Will I get fined?

 

[Karimbo]

This clarified a little, (cant read past the first paragraph due to paywall)

The requirements do not apply to VAT registered businesses with a taxable turnover below the VAT threshold (e.g. those that have registered voluntarily).

https://www.icaew.com/technical/tax/making-tax-digital/mtd-guidance/mtd-and-vat

 

[Karimbo]

I wish gov.uk websites were written in plain English. They should have wrote VAT registered businesses below the VAT threshold can register for MTD voluntarily

 

[paulears]

I noted this quarter that there is a new click facility to deregister for MTD if you are below the threshold, and that wasn't there before! They told me that MTD, once started was not reversible. Things always change.

 

[SteveHa]

No, if your non-exempt turnover is below the threshold you don't need to sign up to MTD.

 

[UK Contractor Accountant]

noted this quarter that there is a new click facility to deregister for MTD if you are below the threshold, and that wasn't there before!

you sure thats not just to de-register from MTD when you cancel your vat registration number.

Once you are in you are in until you de-register for vat or become elegible for one of the exemptions e.g insolvency