As Making Tax Digital (MTD) makes its final approach, many businesses affected won’t be aware of the intricacies of getting ready for this big change and may miss important deadlines that could result in penalties if you end up paying your VAT late. One issue that has come to our attention is relevant to all those filing monthly VAT returns and paying by direct debit. If this is you, then please make a note of the 15th & 16th of May, and here’s why….
HMRC’s new MTD system requires 5 working days from the date you submit your VAT return before it will open the window to allow you to set up your MTD filing account. However, you must set up your filing account at least 15 working days before your filing deadline in order for your direct debit to be set up in time.
So, if you file your March 2019 return on 7 May 2019 and file your April 2019 return on the 7 June (at the latest!), that leaves only the 15th and 16th May to set up your MTD filing account. (Those filing quarterly returns they have longer to set up the MTD account – from 15 May 2019 to 16 July 2019).
Not sure if MTD affects you? Have a go at our MTD Checker.