Eligible businesses with a taxable turnover over the VAT threshold of £85,000 had to register for Making Tax Digital to submit their VAT returns from 1 April 2019. Businesses initially affected by this new initiative include sole traders, partnerships, LLPs, landlords and charities.
The start date for some businesses has been deferred to 1 October 2019, including traders based overseas, annual accounting scheme users, local authorities, public corporations and not for profit organisations that aren’t set up as a company. HMRC has notified these businesses that they are in the so-called ‘deferral group’ for Making Tax Digital.
HMRC have said that they will “take a light touch approach to penalties by not issuing filing or record keeping penalties where businesses are doing their best to comply with MTD” in the first year of mandation.
While this statement reassures businesses not to panic over the implementation of MTD, it’s key that those affected are doing all they can to keep on top of the changes and upcoming VAT returns deadlines.
The good news is that, although the VAT returns system is undergoing modernisation, the frequency or deadlines for payments have not changed, whether for monthly, quarterly or annual schemes.
When is your business’s first Making Tax Digital submission due?
First MTD deadline for businesses that file monthly
For businesses that submit monthly VAT returns and already required to use the Making Tax Digital Service, the first filing deadline is 7 June 2019.
First MTD deadline for businesses that file quarterly
Eligible businesses that file quarterly need to submit their VAT returns under MTD from their first full VAT period after 1 April 2019.
For businesses that pay VAT quarterly, your VAT return deadline remains at 1 month and 7 days after the end of your VAT period. For the majority of businesses, the first MTD deadline for businesses that file quarterly is 7 August 2019.
The table below outlines your first submission date based on your VAT quarter end:
|VAT quarter |
|MTD mandatory |
|Deadline for submitting your |
|1 April 2019 – |
30 June 2019
|7 August 2019|
|1 May 2019 – |
31 July 2019
|7 September 2019|
|1 June 2019 – |
31 August 2019
|7 October 2019|
First MTD deadline for businesses that file annually
The first returns for businesses that submit annual VAT returns will be April 2020 at the earliest.
Need help with Making Tax Digital?
If you’re not sure of when your business should be submitting VAT returns, or whether you should have already registered for MTD altogether, we can help you. Our team have the skills to ensure your accounts are fully compliant and we are committed to helping local businesses migrate to MTD as easily as possible.