The first quarterly submission for MTD has just passed but for those of you who have not yet submitted you still need to make sure you are MTD compliant. Having an MTD filing solution does not, in itself, mean you are MTD for VAT ready. You MUST sign up with HMRC and ensure your software is switched on for MTD submissions.

The timing of sign up is critical because as soon as you register, you will be required to start submitting MTD compliant returns. With all businesses, including those with an initial six-month extension, required to be compliant by 1st October 2019, it is essential that you register soon.

There are still hundreds of thousands of businesses affected by MTD who have not yet signed up with HMRC for MTD submissions. The only businesses not obligated to be compliant are VAT registered businesses with taxable income less than £85,000. For everyone else, the deadline is fast approaching, so register now and take note of the following points:

If you do NOT pay VAT by direct debit

• Allow at least 24 hours after your last non-MTD VAT return submission

• Sign up through the HMRC website, all you need is your existing Government Gateway login

• HMRC will confirm that registration has been successful within 24 to 72 hours via email

• Do not attempt to submit an MTD VAT return until you have received the confirmation

• The final step is to enter your Government Gateway details into your compliant software

• Your software provider will have additional guidance for you to follow online

If you DO pay VAT by direct debit

• There is a more restricted sign up period

• You cannot sign up within the five working days after the deadline for your last submission

• You must sign up at least seven working days before the filing date of your first MTD VAT return

MTD is a great opportunity to review your current systems and ensure they deliver quality management information and to provide you with a clear overview of your financial position in real-time, to enable more informed decisions to be made when it comes to running your business.

Whether you are a small or large business, currently a client or not, we are able to help you get set up and are here to answer any questions that you may have. Contact Jackie Senior on or 01904 464116.