Does the MTD deadline apply to all VAT registered businesses?

Key facts:

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The deadline applies to most VAT registered businesses although you do not currently have to comply if you have voluntarily registered and are below the VAT threshold of £85,000 sales per annum.

Fuller explanation:

The deadline will be 6 months later (i.e. 1st October 2019) for the following, who represent 3.5% of VAT registered businesses:

  • Annual accounting scheme users and businesses required to make payments on account

  • Trusts and ‘not for profit’ organisations that are not companies

  • Many public sector and local government organisations

There is a “soft landing period” for all companies. For VAT return periods commencing between 1 April 2019 and 31 March 2020, HMRC will not enforce the requirement to have digital links between software programs meaning that data can be copy and pasted from one system to the next. From 1st April, 2020, all transfers of data between digital records must be done digitally. However, during this period, the actual 9 Box VAT return must be done by MTD compatible software.