We are fast approaching the first significant filing deadline under Making Tax Digital.
Businesses on the April – June return stagger will have a filing deadline of 7 August 2019. This will be the first MTD return and it is vital that the sign up to MTD is planned carefully.
You will need to allow at least 24 hours after submitting the last non-MTD VAT return before signing up (more if payment is made by direct debit – see below).
Those that pay by direct debit have a more restricted time period in which they can be signed up, due to the impact of banking regulations. Where payment is made by direct debit the business cannot be signed up in the 5 working days after the submission deadline for the last non-MTD VAT return and must be signed up at least 7 working days before the first MTD for VAT return is filed.
This table shows the sign up windows for the first quarters falling within MTD.
|FIRST MTD FOR VAT RETURN||SIGN UP PERIOD STARTS||SIGN UP PERIOD END|
|Apr/May/Jun 2019||15 May 2019||30 July 2019|
|May/Jun/Jul 2019||17 June 2019||29 August 2019|
|Jun/Jul/Aug 2019||15 July 2019||27 September 2019|
HMRC will confirm that the MTD sign up process is complete via an e-mail. This will usually take 72 hours. Once signed up to MTD, all future VAT returns must be filed under MTD. The previous portal cannot be used to submit VAT returns.
Authorise MTDfV Software
Before a VAT return can be filed the MTD software product must be authorised to communicate with HMRC systems. The process is initiated from the software product and will look slightly different in each product. The process involves:
- Checking that the product has been upgraded by the software supplier to be MTD for VAT compatible
- Entering government gateway details of the business / agent
Should you experience a problem with these processes HMRC recommends using the ‘Get help with this page link’ on the page where the problem arises.
This allows you to raise a ticket with the relevant HMRC helpdesk which will respond with specific assistance. The alternative is to phone the HMRC helpline on 0300 200 3700 and ask to speak to the MTD team.