MTD for VAT queries

MTD for VAT queries

Didn't find your answer?

I realise that the MTD for VAT software is not yet ready but I would have thought HMRC could answer a couple of very basic queries not about the software.  Apparently not so.

I recently wrote to the VAT Written Enquires Team to ask about the procedure for obtaining exemption from MTD for VAT for my 86 year old client (still trading) but who does not have a computer (and won't be getting one!).

I also asked whether taxpayers will be required to opt-in to MTD if they thought their turnover in the twelve months after 1.4.19 would exceed £85000 or whether perhaps HMRC would automatically opt-in taxpayers on the basis of the turnover reported in their four previous quarterly VAT returns. 

Six weeks later the HMRC response included 'Currently HMRC have invited a small number of businesses to participate in a trial of MTD for Business.  I have contacted the team responsible for the trial to establish how this will affect your scenarios.  As you can appreciate they are still conducting the trial and as such do not have clear instructions yet.  Once I have more informaion, I will contact you again' 

Reading between the lines I think this is code for - 'Put it out of your mind for now.  We have'

 

 

Replies (6)

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RLI
By lionofludesch
09th May 2018 16:54

Surely you can't be "required" to opt in.

What sort of option is that ??

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Replying to lionofludesch:
ALISK
By atleastisoundknowledgable...
09th May 2018 18:03

The sort that would allow HMRC to state that 100% of taxpayers had chosen to take part.

You read it here first ...

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By ireallyshouldknowthisbut
09th May 2018 18:07

Come off it, no-one has a clue if this will even happen yet, let along what exceptions there might be, or what the procedures are.

It will be "make it up as you go along" time if its ever launched.

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By Marion Hayes
10th May 2018 11:30

I understood that there were already systems in place where people claimed exemption from online filing, as it is already mandatory, and that these were going to remain the same? Is that not the case?
Also, I was told that the only difference between online filing now and next April was that the software to use to file had to be MTD compliant - the information collection and the operation of VAT including registration procedures were unaltered

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Replying to Marion Hayes:
avatar
By John Stone
11th May 2018 10:53

The 86 year old referred to in my original post keeps handwritten records. Each quarter end he completes an old-style paper VAT Return, posts it to me and I feed it into the HMRC VAT portal. No problem. However - he will never be able to keep his accounting records digitally. Hence - he is not currently exempt but needs to be so once MTD for VAT comes on stream. If the exemption regulations 'remain the same' as you suggest - my client is in big big trouble.

I completely concur that the VAT registration rules remain unaltered. However, for VAT registered business hovering around the £85000 turnover mark, who decides who is in MTD and who is out? HMRC or taxpayers. (And exactly how do they decide?)

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Routemaster image
By tom123
10th May 2018 12:29

Conversely, I have a small industrial property business - which has to be vat registered, but with a t/o of £10k.

Currently, easily filing online.

Under the new rules, I guess I could submit on paper if I didn't want to spend on software.

All this for one sales invoice per quarter (generally)..

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