VAT Making Tax Digital - Software Packages

DoaM

Rappa wrote: »

That is one heck of a presumption.

The reality being there are many businesses with t/o below the mandatory VAT registration threshold that have voluntarily registered for VAT,

I suggest you re-read my previous post more carefully. I said IF you're VAT registered ... you HAVE to be VAT registered if t/o is £85k+; you CAN be VAT registered if your t/o is less than that but you don't HAVE to be.

As to whether MTD applies where t/o is less than £85k (AND you're VAT registered) ... THAT was my presumption; I have no idea whether or not it is accurate (hence presumption).

WaywardDriver

DoaM wrote: »

As to whether MTD applies where t/o is less than £85k (AND you're VAT registered) ... THAT was my presumption; I have no idea whether or not it is accurate (hence presumption).

So we take what HMRC says rather than a presumption.

DoaM

WaywardDriver wrote: »

So we take what HMRC says rather than a presumption.

Obviously ... but that doesn't explain the discrepancy regarding VAT registered businesses being told to file digitally even though their t/o is <£85k. i.e. in contradiction to what HMRC website says.

WaywardDriver

comeandgo wrote: »

No from December all vat returns must be filled digitally. Those under threshold have got the extension till December all others now digital filing.

In doing my mother's VAT return today, I came across this https://www.gov.uk/guidance/check-when-a-business-must-follow-the-rules-for-making-tax-digital-for-vat which refers to your December date but I still read this as being exempt if turnover below threshold.
Now curious how HMRC know your turnover is below this - do they link to your self-assessment income tax return?

johnhemming

HMRC know the turnover from the VAT return. That is how they can work out if you should follow MTD or not. If you don't register then you take a big risk if later on they find you should have.