Timetable for Making Tax Digital for VAT - Making VAT Digital 'MVD'.

  • VAT registered business, who are trading above the £85,000 VAT registration threshold must, for VAT returns periods commencing on or after 1 April 2019, have started using MVD 'functional compatible software' which is capable of directly filing the nine box VAT return with HMRC.
  • In the initital stages of MVD HMRC simply wanted you to submit the nine boxes on your VAT return via your software and not by using HMRC's VAT portal.
  • From 1 April 2021, your software has to 'talk' to HMRC and it will be used to submit transactional data. There must be a digital link from the VAT return box back to your software. Copy and paste will no longer be accepted.
  • For full requirements and details of penalties see our MVD subscriber guide.

Some business taxpayers were allowed to defer entry into MVD until 1 October 2019. These were more complicated business models.

  • Trusts
  • 'Not for profit’ organisations that are not set up as a company,
  • VAT divisions and VAT groups
  • Those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts), local authorities
  • Public Listed companies (PLCs)
  • Traders based overseas
  • Those required to make payments on account
  • Annual accounting scheme users

VAT registered business who are trading below the VAT threshold may join on a voluntary basis.

Who needs to join MVD and when?

All VAT registered businesses who operate above the VAT threshold of £85,000 must now use MVD, unless an exemption applies. From 1 April 2022, all remaining VAT registered businesses must join, again, unless an exemption applies.

Filing exemptions and exclusions

  • Those who are digitally excluded by reason of age, disability, location etc.
  • Individuals or businesses subject to insolvency procedures.
  • Businesses run entirely by members of a religious society or order for whom electronic communication is incompatible.
  • See Making Tax Digital for VAT: who is digitally excluded?

 

 

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