HMRC has published VAT Notice 700/22 which sets out the VAT record-keeping and filing requirements that will apply to businesses from 1 April 2019. HMRC has repeated that it fully intends to launch MTD for VAT on that date. MTD for other taxes will follow in the future.
Note that the MTD requirements apply to businesses that are required to be registered for VAT by law. Many businesses that are not required to register for VAT choose to register anyway and these businesses will not be required to keep digital records or use software to file their returns, although they may choose to do so. They may be brought into MTD at a later date. However, these businesses must monitor their turnover after 1 April 2019 as if they then exceed the registration threshold they will be automatically brought into MTD. Once in MTD for VAT a business must stay in MTD for VAT for as long as it is registered.
For those businesses in MTD that intend to rely on spreadsheets to prepare their VAT returns they should ensure that their “permanent information” is held somewhere in a digital format. They must also be able to provide the additional analysis of turnover by VAT type that is required by MTD.
HMRC has also published a list of software providers who have so far produced MTD compatible software. The list provides a link to the software providers’ own websites but not to the specific MTD compatible products. If your business is going to be included in MTD you should check that your software provider is going to be ready for 1 April 2019.