Making Tax Digital – A guide to your next steps

Making Tax Digital (MTD) for VAT came into force on 1st April 2019, meaning that most businesses filing a VAT return for a period that starts on or after 1st April 2019 will have to comply with the new rules. At TC, we want to make sure that you know the steps you need to take to ensure you are ready and compliant. Use the below chart to see if there is anything you need to do.

How to register for MTD

All businesses affected by MTD for VAT will need to go through a short one-off registration process with HMRC.

To register with HMRC, please use the following link: https://www.tax.service.gov.uk/vat-through-software/sign-up/

Please note that it may take HMRC up to 72 hours to confirm by email that you are registered.

Please do not try and link software or submit a return until you have received this confirmation. Businesses that currently pay VAT by Direct Debit cannot sign up for MTD for VAT in the seven working days leading up to, or the five working days immediately after their VAT Return is due.

Whilst there is no harm in registering early, once you are registered you will have to start submitting MTD compliant returns, irrespective of the return period. If you have not yet registered, we would advise using the following table to decide when to register;

First Mandatory MTD VAT Return Period	When to register for MTD
Monthly Returns – 1^st April to 30^th April	Between 15^th May and 24^th May
Quarterly Returns – 1^st April to 30^th June	Between 15^th May and 24^th July
Quarterly Returns – 1^st May to 31^st July	Between 17^th June and 23^rd August
Quarterly Returns – 1^st June to 31^st August	Between 15^th July and 25^th September

Please note there are a small number of businesses that have been given an additional six month deferral period. HMRC will have written to you to notify you If this is the case.

Once you have registered with HMRC, you will need to link your software to HMRC, and then you can file MTD VAT returns.

Need some assistance?

If you have any questions regarding MTD for VAT please get in touch with your usual TC contact.

If you are not a client, we will be very happy to help enquiries@tc-group.com.