Making Tax Digital (MTD) has been live since April 2019, and yet businesses and individuals still don’t know what to do about it. For the first year, this will apply to companies with a turnover of £85,000, though you can sign up early if you want.
MTDfVAT Support findings
What we have found through the support of MTDfVAT, is that people are not sure what steps to take to be MTD compliant. Some people will just buy an MTD solution, without any checks. We thought it would help people get live with MTD quicker if they followed the below steps:
- Purchase MTDfVAT or other MTD solution
- Familiarise yourself with the back office
- Once happy to submit, you can register for MTD through HMRC
- This registration will take up to 72 hours and 7 days if you plan to pay via direct debit so be aware of these time frames
If you encounter an Obligation Error, this means that the Company/Individual name and/or VAT number aren’t on the MTD database. This is normally because you haven’t registered for MTD or have used the wrong details.
The solution we always recommend is to register for MTD using this link from HMRC. This will run through the registration process and allow you to sign up for MTD.
The other solution would be that the company/individual details don’t match those on the MTD server. For example, JBloggs & Co could be registered with HMRC, but I signed up to MTDfVAT with JBloggs and Co. This means that the name is different and as such will give the error above.
MTDfVAT is here to help
If you would like to find out more about our Making Tax Digital Solution, please contact the team on sales@mtdfvat.co.uk
Alternatively, please visit www.MTDfVAT.co.uk for more information on making tax digital for VAT, or to purchase MTDfVAT software online.