Below VAT threshold - Making Tax Digital

ellectrastar

I am planning on registering for VAT but will not be earning above the threshold.



Making Tax Digital only appears to apply to companies that currently trade above the threshold. HMRC's page about how to get ready has a section referring to turnover being below the threshold but just pushes signing up anyway. I don't want to sign up if I don't have to, which it appears I don't. BUT - how would I submit my VAT return data? Still via Government Gateway? (I used to submit returns when I owned a Ltd company so am familiar with this process.)

J_B

I did my return last week in the same way as I have always done - just entered the numbers into the boxes as before.


This thread
https://forums.moneysavingexpert.com/discussion/6000145/vat-making-tax-digital-software-packages
suggests that we only have till December before we have to jump on the wagon.

Rappa

J_B wrote: »

...

This thread
https://forums.moneysavingexpert.com/discussion/6000145/vat-making-tax-digital-software-packages
suggests that we only have till December before we have to jump on the wagon.

Questions asked in that thread over that

No confirmation here either
https://www.gov.uk/guidance/check-when-a-business-must-follow-the-rules-for-making-tax-digital-for-vat

ellectrastar

Thanks JB. I’d like to find somewhere on HMRC’s website that states this, however they always like to hide information away if they don’t want you to know!
I think the whole thing is annoying. They pass the expense etc of updating their processes to their customers.

Barney_Rubble_0403

I did a vat return via the gateway as normal for our holding company as its taxable turnover is below the 85k thredhold - collects rent from the Ltd company. We don't,t use any software to create the accounts.

ellectrastar

So can do as normal now until maybe December. But who knows for sure. I think I will go to the horse’s mouth for confirmation seeing as they don’t seem to want to put it out there!

Aquamania

I'm not sure where December comes into it.

Most companies that are registered for VAT because they have to be were expected to join MTD from last April.

There is a temporary deferrment for some affected companies until October this year.

Any company under the VAT threshold (whether registered for VAT or not) is not currently obligated to join MTD as they benefit from automatic exemption, although they can join if they wish to.

Companies that are obligated to join MTD may in certain circumstances apply for exemption too.

Those companies that are not obligated to join MTD carry on as usual with regards to VAT.

ellectrastar

December was raised as someone linked to another thread where someone suggested that at this time those registered but below the threshold would have to transfer to MTD - although I couldn’t find anything to say this, I couldn’t find anything saying that those under the threshold should carry on as normal either!

comeandgo

It was the case, until beginning of this month when HMRC did turnaround, that all companies had to file vat returns digitally. Under threshold had until December 2019 to do this. Now they can do it as they have always done it.

Rappa

ellectrastar wrote: »

December was raised as someone linked to another thread where someone suggested that at this time those registered but below the threshold would have to transfer to MTD - although I couldn’t find anything to say this, I couldn’t find anything saying that those under the threshold should carry on as normal either!

I couldn't either, but fortunately that 'someone' posted in this thread too just 4 minutes after you did

comeandgo wrote: »

It was the case, until beginning of this month when HMRC did turnaround, that all companies had to file vat returns digitally. Under threshold had until December 2019 to do this. Now they can do it as they have always done it.

The question over your assertion was raised in the other thread, and it is equally now applicable to this thead. So, here goes for a second time..

WaywardDriver wrote: »

I'm sure you're correct but can you point me to this as a quick look at HMRC says "The Making Tax Digital requirements will apply to all VAT registered businesses for their VAT obligations from April 2019 where their turnovers are in excess of the VAT threshold (currently £85,000).".