MTD Sign In Requirements
Most business owners will be aware, HMRC has introduced rules under the Making Tax Digital (MTD) initiative that require VAT registered businesses with taxable turnover above the VAT registration threshold (currently £85,000) to keep digital records and submit VAT Returns to HMRC using compatible software. For the vast majority of businesses this applies to VAT accounting periods that started on or after 1 April 2019.
Did you know?……
- Businesses are required to be signed up with HMRC for MTD. This needs to be done once digitally compatible software has been installed and prior to the submission of the first VAT return under the MTD regime.
- There are specific timeframes set by HMRC for when the business can sign up to MTD. The process should be at least 5 working days after the submission and payment due date of the last return under the existing system and at least 7 working days prior to the submission due date of the first VAT return under the new system.
- Businesses need to be aware that HMRC can take up to 72 hours to deal with processing the sign up application and it is advisable that a business signs up at least 10 working days prior to the submission due date of the first VAT return under MTD.
- Once a business has signed up with HMRC for MTD and confirmation has been received of this, the final step is to turn on digital filing on the digitally compatible software.
To sign up for MTD businesses need to either:
Go to www.gov.uk and search for ‘Use software to submit your VAT Returns’
Go to their Government Gateway and follow the link for ‘Sign up to Making tax Digital’
If you are in doubt on the steps you need to take to get your business ready for MTD, please contact the Blue Sky Accountancy Services team on:
Email: email@example.com or Call: 0345 2583 759