From 1st April the MTD for VAT rules came into force. This means that the vast majority of businesses will have to keep digital records and submit their VAT returns using MTD compliant software for all VAT periods commencing on or after 1st April.
As one of the first software providers to be recognised by HMRC, we have been at the forefront of this development and already have over 600 successful MTD submissions. These submissions have worked well, with feedback from customers suggesting that MTD often speeds up the VAT period end process.
However, it is worth noting that some customers have had problems with the initial setup process with HMRC, so below are a couple of points worth considering by anyone about to go through this process.
1) MTD VAT is a multi-stage process.
You need to:
- Ensure you have MTD compliant software. A full list of recognised programs can be found on the HMRC website
- Sign each business up for MTD for VAT with HMRC. This in not automatically done by HMRC!
- It can be done through www.GOV.uk
- Search for ‘Use software to submit your VAT Returns’.
- Follow the instructions on the screen. The exact process will depend on your business type but you will need to enter your Government Gateway ID and password, after which you will be led through a series of questions to verify your application. Wait for a confirmation email from HMRC to say that you are ready to go. This may take several days.
- Link your business in your MTD software to its new HMRC MTD account.
Note if you are a registered agent you also have to set up an Agent Services Account (ASA). HMRC have produced a short video showing you how to do this. See
2) The HMRC signup process will take several days and has to be done within specific dates.
- HMRC have produced a useful tool that shows the timeline for signing up according to your filing frequency and payment method. We have made it available on our website under FAQs
- If you try to sign up outside these dates it may there is a chance that your records will not be correctly dealt with by HMRC and you may have to send old returns again.
For more information about MTD for VAT, please see our website here there are lots of articles, FAQs and videos covering every aspect of MTD VAT.