Vague legislation. For VAT periods which start on or after 1 April 2019 you’ll be required to use HMRC’s Making Tax Digital for VAT (MTDfV).The legislation was published in early 2018, but details about how it will work in practice were not forthcoming. Not a moment too soon, HMRC has gone some way to rectify this by publishing a new VAT Notice 700/22
Key dates. The Notice confirms that MTDfV will apply for all businesses where their turnover exceeded the registration limit, which is set to remain at £85,000, in the previous twelve months. This means that even where your business is VAT registered and has turnover below the registration limit, you won’t need to file your returns through MTDfV.
Tip. As MTDfV is only a little over six months away, if you think that it will apply to you we recommend that you read HMRC’s new Notice sooner rather than later.
HMRC has a new notice about Making Tax Digital for VAT which will apply to all businesses with a turnover of £85,000 or more from 1 April 2019. All business with turnover around this mark should read the notice without delay.