New Information Regarding Enrollment
VAT registered businesses with a taxable turnover above the VAT registration threshold of £85,000 must Making Tax Digital (MTD) compliant software to submit their VAT returns from 1 April 2019. It is important to ensure that your business enrols into Making Tax Digital at the correct time in order to avoid any potential issues. The CIOT have prepared an illustration to help businesses make sure that they enrol during the appropriate window which is available to view here.
It is important to note that HMRC guidelines state that:
“If you pay your VAT by Direct Debit you will not be able to sign up in the 15 working days leading up to your submission date and the 5 working days immediately after it.”
Whilst the illustration is not a substitute for professional advice it offers useful guidance.
Stagger Group 1
Sign up to Making Tax Digital for VAT pilot in order to submit the January to March 2019 VAT return by the 4th May 2019 and by the 4th August for the April to June VAT return.
Stagger Group 2
Sign up to Making Tax Digital for VAT pilot in order to submit the November to January 2019 VAT return by the 4th March 2019 and by 4th June for the February to April VAT return.
Stagger Group 3
Sign up to Making Tax Digital for VAT pilot in order to submit the December to February 2019 VAT return by the 4th April 2019 and by 4th July for the March to May VAT return.
Monthly VAT Returns
Sign up to Making Tax Digital for VAT pilot in order to submit the January 2019 VAT return by the 4th March 2019 and by the 4th April 2019 for the February VAT return.
Before enrolling for Making Tax Digital it is essential that your business is ready as, once enrolled, it will lose the ability to submit VAT returns through the current channels. Failure to submit VAT returns will continue to attract penalties as it does now.
If you feel that you are not ready for Making Tax Digital for VAT, you should already have been registered for VAT or need any assistance with your VAT affairs prior to enrolment do not hesitate to contact Constable VAT for assistance or clarification.