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12th December 2018

What’s the start date for Making Tax Digital?

HMRC plans delay

Many businesses are now asking us: “What is the start date for Making Tax Digital?”

start date for Making Tax Digital - calendar

Virtually all VAT registered businesses will have to comply, but not necessarily from 1 April 2019.

So what is the start date for Making Tax Digital for your business?

Timetable – Stage 1

Making Tax Digital for VAT (MTDfV) will apply if you’re required to be registered, and have turnover in the twelve months ending on the start of your first VAT quarter beginning on or after 1 April 2019, unless you’re exempt.

Example: The first day of ABC Ltd VAT quarter beginning on or after 1 April 2019 is 1 June 2019. The earliest VAT figures ABC Ltd must report to HMRC using MTD are for the quarter ended 31 August 2019.

If you’re currently exempt from submitting VAT returns online, you’ll also be exempt from MTDfV.

HMRC aims to write to every business which is exempt to confirm that MTD won’t apply.

Where MTDfV applies to you HMRC won’t allow you to submit your VAT returns using the current system. The only way to send you quarterly VAT figures to HMRC will be to use MTDfV compatible software.

The start date for Making Tax Digital for VAT for some businesses and organisations has been put back to the first VAT quarter starting on or after 1 October 2019. The deferral applies to trusts, not-for-profit organisations unless they are run through a limited company, divisional and group registrations, businesses based overseas, plus those required to make VAT payments on account or use the annual accounting system.

If you’re required to register for VAT on or after 1 April 2019 MTDfV will apply to you from the date of registration, unless:

  • You’re exempt – you’ll need to apply to HMRC for an exemption
  • Your business falls into one of the deferred start date categories
  • The stage 2 start date applies to you

Timetable – Stage 2

If you don’t fall into any of the categories we’ve already mentioned, but you’re VAT registered, or become registered on or after 1 April 2020, MTDfV will apply from the start of your first VAT quarter beginning on or after 1 April 2020.

This start date will apply mainly to businesses which are registered but aren’t required to be i.e. voluntary registrations, for example if your turnover is below the VAT registration threshold.

Got any questions about Making Tax Digital? You can contact us by email or arrange to schedule a chat here.

The background to Making Tax Digital is here.

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