For further insight into MTD, please see the Frequently Asked Questions below.
Yes, for VAT registered businesses with turnover of £85,000 (the current threshold) or more.
The only exemptions are for
If you are a VAT registered business you need to register for MTD unless you have applied for exemption or are in the deferral group (see 'When does Making Tax Digital start?'). NB, you will not be automatically signed up for MTD.
You will need compatible software to submit your VAT Return and a Government Gateway User ID and password (if you don't have one, you can create one when you sign up).
From 1 April 2019 MTD is being used for VAT, except for businesses in the deferred group (see 'When does MTD start?') which started on 1 October 2019.
From no earlier than 2021 MTD will also be used for Corporation Tax and Income Tax.
Perrys Accountants offer clients an exclusive service for keeping all their tax return records in one place – our One Click system. This secure client portal is a way of making your record keeping more efficient and will facilitate your adoption of MTD. Caroline Hoare of Perrys explains the benefits and how One Click works in the following video.