Following new rules, businesses that are VAT-registered who have a taxable turnover above the £85,000 VAT threshold need to keep file of their records digitally as well as file a VAT return quarterly using Making Tax Digital software.

HMRC have recently written to over 100,000 VAT-registered businesses who are currently non-compliant to these obligations, and have warned that the failure to satisfy these obligations will result in a penalty fine of up to £400. As well as a penalty fine, there is also the possibility of having the online VAT return removed, meaning businesses are left with no other option but to register for MTD for VAT.

It is recommended that businesses do not delay in registering for MTD, as this could result in being blocked from filing returns via the online VAT return.

To register for MTD for VAT, you will need the following:

  • Your business email address
  • A Government Gateway user ID and password
  • VAT registration number
  • Latest VAT return

If you still need to register, visit the GOV website here