My client has a 31 March year end for her annual accounting for VAT. She has a standard letter from HMRC confirming that as she is on annual accounting her obligation to keep records digitally has been deferred to 31 October 2019.
Her current accounting period for VAT finishes on 31 March 2020. Does this mean that her first VAT return under MTD will be for the year commencing on 1 April 2020? Hence she should only register for MTD after she has sent in her 31 March 2020 VAT return via the old VAT portal? I assume that if she registers for MTD in November 2019 this would effectively mean she was volunteering unnecessarily to be in MTD for the March 2020 year end. Have I understood this correctly?
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Yep. Her first return will be for the year ended March 2021. No need to register until May 2021, although I probably wouldn't leave it that late.
I've used annual accounting to buy extra time for a few clients. Also, spreads my workload. Also, MTD always starts at the start of an accounting year.
Lots of advantages. Everyone's a winner.
The one point you've missed is the obligation to keep digital records starts with the first VAT period starting after 1 (not 31) October.
So 1 April 2020.
I would suggest registering ASAP after you have submitted your last return on the HMRC website/ portal. To ensure that everything is set up in time for your first return on MTD.