MAKING TAX DIGITAL FOR VAT – THE FINAL STEPS
Making Tax Digital for VAT is now live and affecting over a million UK businesses. To ensure your business is ready here’s the final steps that you need to take before you are MTD ready.
IMPORTANT INFORMATION – please read the following information carefully, it is essential that the following steps are completed in the order and timeframes set out below.
1. Have you created your HMRC Business Tax Account?
- If yes, continue to step 4
- If not, continue to step 2
2. Click the link to create your account, following the steps below:
The above link will take you to the following screen:
Click on the green ‘sign-in’ tab
Then click ‘Create sign in details’
Follow the on screen instructions
3. You will be provided with your Government Gateway Credentials – User ID & Password
4. Have your Government Gateway Credentials & the VAT number for relevant business to hand when signing up for MTD
5. Sign up for Making Tax Digital for VAT (See below)
SIGN UP FOR MTD FOR VAT – IMPORTANT INFORMATION
- Each business will need to sign up, HMRC will not automatically transfer businesses
- Make sure you submit your last NON-MTD VAT return in the usual way before signing up.
- Do not sign up in the 24 hours after submitting your last NON-MTD VAT return (if submitted on the due date and not on Direct Debit, e.g if your last NON-MTD VAT return for March 2019 is submitted on 7th May, you cannot sign up for MTD until 9th May – see table below)
THE TIMING OF THIS STEP IS CRITICAL
HMRC has set specific timeframes for businesses to complete the ‘sign-up’ process, these depend on:
- When you submit a VAT return
- How you pay VAT (i.e. by direct debit)
You must ‘sign up’ within the allotted timeframe, as set out in the table below:
In addition to these timeframes, HMRC requires businesses to sign up at least 7 days before your VAT Return is due.
SIGNING UP FOR MTD – HELP & GUIDANCE
Should you need further help when signing up, our guide to can be found below.
AUTHORISE YOUR SOFTWARE
Before you can send your first MTD VAT return, you’ll need to authorise your software.
Authorise your software for XERO USERS
Ask your software supplier for further guidance.
Once you have actioned these final steps your business will be ready for MTD for VAT!