There are some exemptions from MTD for VAT. However, the exemption categories are tightly drawn and are unlikely to be applicable to most VAT-registered businesses. We can help you to meet your MTD for VAT obligations. MTD for income tax MTD for income tax was expected to be introduced from April 2024. This has now been delayed; self-employed individuals and landlords with income over £50,000 will be mandated to apply MTD from April 2026. Those with income over £30,000 will be mandated from April 2027 and the government will review the application of MTD for smaller businesses. We can help you assess when MTD will be required for your business and to meet your obligations.
Tax Tip When you first register for VAT you can reclaim input tax on goods purchased up to four years prior to registration provided they are still held when registration takes place. VAT on services supplied in the six months prior to registration may also be reclaimed.
Making Tax Digital (MTD) MTD for VAT
MTD for VAT is part of a government strategy which will ultimately require taxpayers to move to a fully digital tax system. Under the MTD for VAT rules, all VAT-registered businesses must keep digital records for VAT purposes and provide their VAT return information to HMRC using MTD functional compatible software.
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