What is Making Tax Digital (MTD)?
If your taxable turnover falls below the VAT threshold you will need to follow the MTD rules, unless you deregister from VAT or meet other criteria, such as:
- Your business is run by a religious society whose beliefs are incompatible with the requirements of the regulations, i.e. religious beliefs that prevent them from using computers.
- It is not reasonably practical for you to use digital tools to keep your business records and submit your returns due to age, disability, remoteness of location or for any other reason.
- You are subject to an insolvency procedure.
- You are voluntarily registered for VAT and are trading under the threshold.
If you are exempt from MTD but choose to follow the MTD rules, you must inform HMRC, in writing, before the start of the next VAT period you want to use the MTD service and the date your next VAT period begins.