|MAKING TAX DIGITAL FOR VAT – UPDATE
July 4th, 2019.
HM Revenue & Customs (HMRC) has issued an update on how VAT-registered businesses need to sign up for Making Tax Digital for VAT.
Most VAT registered businesses with a taxable turnover above £85,000 need to sign up for Making Tax Digital for VAT.
When to sign up;
If you do not pay by Direct Debit, sign up at least 72 hours before your return is due. If you pay by Direct Debit, sign up at least 7 working days before or 5 working days after your return is due. Make sure your last Direct Debit has come out of your bank account before signing up.
What you’ll need;
Compatible software to submit your VAT Return
A Government Gateway user ID and password
Further information will be needed if you are signing up as;
A limited company
A sole trader
An agent for a client’s business
If you’re an individual or limited company that has never used VAT online services or are creating a new Government Gateway user ID, you will need to answer questions such as;
Your VAT registration number
The date you became VAT registered
The address where the business is registered for VAT
The box 5 amount from your last VAT Return
Limited companies will also need;
The company name as registered with Companies House
The business email
Your contact preference
Sole traders will also need;
A National Insurance contributions number
Online services may be slow during busy times. Check if there are any problems with this service.
After you sign up;
HMRC will send you a confirmation email within 72 hours of signing up. Do not submit a VAT Return until you receive the confirmation email. The deadlines and frequency of your VAT Returns and payments will not change.
You’ll need to submit your VAT Return using compatible software, but you can still use your VAT online account to view deadlines and manage payments.
For more on this, visit www.gov.uk