Making Tax Digital – when you need to sign up and what you’ll need

7th June 2019

We are now two months past the start date of the 1st April 2019 for Making Tax Digital for VAT and into the last month of what will be some businesses first VAT quarter under Making Tax Digital.

Some businesses may not be aware that even though they may be on MTD compliant software that they will still need to sign-up and signing-up at the right time is key to a smooth transition onto the new MTD regime.

HMRC recommend that you do not sign-up until you have submitted your last non-MTD VAT return. If you have signed up for MTD before your last non-MTD return is submitted then you MUST submit your return using MTD compliant software. If you submit it through the government gateway it will be rejected.

When to sign-up

If you pay by direct debit you must allow 5 working days after the filing deadline for your final non-MTD return and 7 working days before the filing deadline to file your first return under MTD.

If you pay by other methods or are in repayment position you must allow 24 hours after your last non-MTD return before signing up and 72 hours after signing up before filing your first return under MTD.

What you will need when signing up

All the information your business will need to sign-up for Making Tax Digital should be available on its business tax account but to summarise the following is needed:

  • Government gateway user ID and password
  • A business e-mail address for receiving VAT information
  • VAT registration number
  • Company registration number (if a company)
  • Self-assessment unique taxpayer reference (if an individual or a partnership)
  • Corporation tax unique taxpayer reference (if a company)

If your business needs any assistance with signing up for Making Tax Digital or how it affects you please contact your local W&P office: https://www.whitingsllp.co.uk/about-us/contact-us/

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