Most VAT registered businesses with a taxable turnover above £85,000 must follow the rules for Making Tax Digital for VAT.
This means you’ll need to keep digital records and submit VAT Returns using compatible software.
You must keep digital VAT records from your first VAT Return period starting on or after 1 April 2019 if your business:
- has a taxable turnover over £85,000
- is not in the deferral group
You must sign up for Making Tax Digital at least 72 hours before your VAT Return is due, or 7 days before if you pay by direct debit.
Who must follow the rules from 1 October 2019
You might be in the deferral group and must keep digital VAT records from your first VAT Return period starting on or after 1 October 2019 if your business has a taxable turnover over £85,000 and either:
- is part of a VAT group or VAT division
- is a trader based overseas
- is a trust
- is a not for profit organisation that is not set up as a company
- uses the annual accounting scheme
- is a local authority
- is a public corporation
- has to make payments on account
- uses the VAT GIANT service
HMRC will consider an application for exemption if you:
- cannot use computers, software or the internet because of your age, a disability or where you live
- or your business are subject to an insolvency procedure
- object to using computers on religious grounds
For further information please visit the GOV.UK website.