Frequently Asked Question

All VAT Registered entities must now submit VAT returns via MTD compatible software, unless you have exemption. However, you no longer have to register for MTD for VAT, this is now automatic with VAT registration.

You do however need an online VAT account with HMRC to authorise them to share your data with your chosen MTD complaint software https://thetaxkit.co.uk/index.html#how-does-it-work

MTD Compatible software includes spreadsheet when used with MTD compatible Bridging software.

Initially only VAT Registered entities over £85,000 annual turnover (ie above the VAT Registration Threshold) had to sign up for MTD. But this has now been extended to all VAT Registered entities regardless of turnover (unless they have been specifically exempted by HMRC). So, as from 1^st November 2022, all VAT Returns must be submitted in accordance with MTD.