Does anyone know if you have a client that is VAT registered but his turnover is under the VAT threshold and they dont want to do MTD as it is not mandated to do so , and they do their VAT on a manual system , how they will in future be able to submit their VAT return if the Gateway will no longer be open ?
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Tempted to say on paper.
However, my understanding is that it will still be open for traders not required to join in the MTD party.
But - hey - who knows ?
So, my two small VAT registered businesses will need to go 'backwards' from happily submitting online, to getting paper returns sent through, and having to rely on postage.
I cannot wait :)
To clarify, Tom, when I said "it", I meant the Gateway.
Maybe we'll know more after the Budget. Like whether it'll be watered down yet again.
The government gateway will continue to be available for those VAT registered businesses under the £85k limit unless they voluntarily join MTD. How HMRC monitor that in practice (until it's too late) I don't know.
The Gateway will also have to remain open for larger businesses who are unable to MTD for other reasons too. In reality, I think the Gateway is here to stay!
If the VATable turnover of a business is over £85,000 their gateway will be closed down. The only exception if they have applied for exemption before hand. I don't think not be ready will prevent the gateway being closed.
I would assume that the HMRC will realise whether their turnover is above £85,000 from boxes 1 and 6. (If this is absolutely the case then partially exempt business may be assumed to require to follow the MTD for VAT rules sooner then they should be.)
The plan was to keep the Gateway open until at least April 2020.
If the VAT registration threshold is reduced (as has been mooted following the report by the Office of Tax Simplification last year), then I am sure the £85,000 VAT MTD exemption will drop to the reduced threshold too - or disappear altogether.
What I want to know is how they determine from Box 6 whether your taxable turnover is over the registration threshold. Given that this will include exempt and OTS supplies.