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Where Taxpayers and Advisers Meet

MTD and VAT is it compulsory?

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

MTD and VAT is it compulsory?

Postby pawncob » Sat Feb 16, 2019 10:37 pm

I've had the usual letter from HMRC saying I've got to register for MTD VAT for my development company and it says my turnover last year was such that I must use digital VAT.
BUT my turnover last year was zero. :!:
Can I ignore digi VAT? :mrgreen:
With a pinch of salt take what I say, but don't exceed your RDA

kingmaker
Posts: 8
Joined: Tue Feb 11, 2014 3:14 am

Re: MTD and VAT is it compulsory?

Postby kingmaker » Fri Mar 01, 2019 8:46 pm

MTD applies for turnover over £85k businesses. This requirement do not apply to VAT registered businesses with taxable turnover below the VAT threshold (eg, those that have registered voluntarily).


If HMRC have contacted you, please respond with all the facts and dont ignore the letter.

Regards
I'm looking for VAT advisory work & subcontracting work from accountants

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: MTD and VAT is it compulsory?

Postby pawncob » Sun Mar 03, 2019 9:33 pm

When I sell the development I will exceed the threshold. But in the meantime, while I'm making VAT claims, can I continue with normal on line claims?
With a pinch of salt take what I say, but don't exceed your RDA

Trevor S
Posts: 31
Joined: Tue Jan 01, 2019 12:37 am

Re: MTD and VAT is it compulsory?

Postby Trevor S » Mon Mar 04, 2019 12:10 am

The new regulation 32B (see legislation at http://www.legislation.gov.uk/uksi/2018/261/contents/made ) would imply that in the circumstances you've described you would not be subject to MTD until the point at which the previous year's turnover exceeds the threshold. Note that previous year is a rolling twelve month period, it is not your last complete financial year.

However I'd agree with the previous response that thie letter should not just be ignored. If, reading the guidance, you believe that you're not subject to MTD yet, you should respond to them setting out why.

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: MTD and VAT is it compulsory?

Postby pawncob » Mon Mar 04, 2019 1:40 pm

I have emailed clare.sheehan@hmrc.gsi.gov.uk, but so far without response. I'll do it again and then write a letter. Thanks.
With a pinch of salt take what I say, but don't exceed your RDA

pawncob
Posts: 4352
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: MTD and VAT is it compulsory?

Postby pawncob » Fri Mar 08, 2019 5:37 pm

My second email elicited a response, which confirmed that I don't have to use MTD. (But when I sell the next property I will)
(Yes, HMRC have moved into the digital age and now use email, but you have to threaten them to get a reply)
With a pinch of salt take what I say, but don't exceed your RDA


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