MTD for VAT is compulsory for VAT-registered businesses with turnover above the current VAT-registration threshold of £85,000, which has been frozen until 1 April 2020.
From the start of their first VAT return period or after 1 April 2019, VAT-registered businesses with turnover above the VAT registration threshold will need to comply with the digital record-keeping and reporting requirements of MTD for VAT.
VAT-registered businesses whose turnover is below the VAT registration threshold will be able to choose whether to join MTD for VAT.
Once within the scheme, a business must remain in it while they are VAT-registered, even if their turnover falls below the VAT-registration threshold.
Where turnover is above the VAT-registration threshold on 1 April 2019, the start date will depend on how the VAT quarters fall. This is illustrated in the following table:
|VAT return quarters
|MTD start date
|Ending 31 March, 30 June, 30 September, 31 December
|1 April 2019
|Ending 30 April, 31 July, 31 October, 31 January
|1 May 2019
|Ending 31 May, 31 August, 30 November, 28 February
|1 June 2019
Where turnover is below the VAT-registration threshold (and the business has not opted in to MTD for VAT), the business should check its turnover at the end of each month.
If in the previous 12 months the turnover is more than the VAT-registration threshold applying on the first day of the following month, it should start to apply the MTD for VAT rules from the start of its next VAT accounting period.
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