Making Tax Digital ― signing up for MTD

Produced by Tolley
Making Tax Digital ― signing up for MTD

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Making Tax Digital ― signing up for MTD
  • Background
  • Timelines
  • Overseas businesses
  • Digitally exempt persons
  • Notifying HMRC
  • Opting out
  • Turnover test
  • Trading under the VAT registration threshold
  • Signing up to MTD
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of how businesses or their agents need to register for the MTD provisions. This note needs to be read in conjunction with the Making Tax Digital ― VAT ― returns and compliance guidance note.

HMRC has produced some Help and support for Making Tax Digital videos to assist businesses with signing up to MTD and using MTD.

HMRC has also provided further information which may be of use in MTD ― HMRC developer hub.


This guidance note provides an overview of how to register for Making Tax Digital and submitting VAT returns using MTD-compatible software. HMRC has published VAT Notice 700/22 which provides details of the requirements and should be read by anyone preparing for the regime.

Businesses that currently do not use software to complete their business records or use software that is not MTD-compatible (functional compatible) will need to take steps to ensure that they are VAT compliant with the new rules which came into effect on 1 April or 1 October 2019. The rules also apply to agents who submit VAT returns on behalf of their clients as they will need to use MTD-compatible software.

Currently, the MTD provisions only apply to businesses with a turnover exceeding the VAT registration threshold (£85,000) and it only applies to the business’ VAT obligations. Businesses are required to use the MTD online provisions with effect from April or October 2019. Businesses that are trading below the VAT registration threshold are not required to file their returns using the

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