If you missed the 7th August MTD for VAT deadline you’re not alone. HMRC have reported that 76% of stagger one businesses (370,000 businesses) had signed up on time, with over 60,000 submissions a day at the peak. They report this figure is in line with expectations, given their public stance on penalties in the early stages of MTD for VAT. For businesses which are doing their best to comply, HMRC have committed to take a light touch approach to digital record keeping and filing penalties. Sanctions are not avoidable in cases of deliberate non-compliance, however.
Stagger One Businesses
If you are a quarterly stagger one filer, and missed the deadline on 7th August, you should look out for a letter from HMRC with further details on how to join the scheme. HMRC expect the numbers of businesses registering for Making Tax Digital to increase significantly as a result of these letters.
To be MTD for VAT compliant, you will need to both sign up for MTD and use compliant software. For businesses with an established digital record keeping method, like Excel or a bookkeeping software, MTDfVAT is an ideal solution that allows you to become compliant without breaking the bank. It links your VAT totals to HMRC, so your VAT return is MTD for VAT compliant. If you’re new to digital record keeping then Excel is a viable solution with MTDfVAT.
Stagger Two Sign Up Deadline
Stagger two businesses are now getting ready for their filing deadline on 7th September. There are some key points to remember when signing up to MTD for VAT:
- If you pay by Direct Debit, you will not be able to sign up in the seven working days before the deadline, or in the 5 working days after. You should not sign up until your final non-MTD payment has been debited.
- Allow 72 hours for signing up to MTD for VAT before filing.
- Sign up is not automatic, you can find more details here
Sign up to MTDfVAT
MTDfVAT is £50 +VAT per year. Click here to find out more and buy your license.