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Does Making Tax Digital for VAT affect my business?

The changes being introduced in April 2019 under Making Tax Digital (MTD) for VAT are compulsory for businesses that:

  • Are VAT registered, and
  • Have a taxable turnover above the VAT registration threshold, currently £85,000.

If your VAT registered business has a turnover that’s below the threshold, the submitting of VAT returns under MTD is optional.

Even if you already submit VAT Returns online from your Sage service, or through the HMRC online services, you will still need to sign up for Making Tax Digital (MTD) for VAT with HMRC before you can start submitting MTD returns.

If your business is affected, we recommend you start preparing now to ensure a smooth switch to Making Tax Digital for VAT.

HMRC has stated that there will be exemptions for some organisations, including:

  • Where religious beliefs are incompatible with the regulation requirements.
  • Where it isn’t reasonably practicable to use the required digital tools, for example, remoteness of location.
  • Businesses subject to an insolvency procedure.

If you think you may be exempt from MTD, you should contact the HMRC VAT Helpline to make alternative arrangements.

Find out more about MTD

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