Value Added Tax

Making Tax Digital ― signing up for MTD

Produced by Tolley
  • 08 Dec 2021 13:03

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
  • How to sign up to MTD as a business
  • Information required for sign-up
  • Processing and confirmation of sign-up
  • Time at which to sign up
  • How to sign up clients to MTD as an agent
  • Creating an agent services account (ASA)
  • Linking clients to ASA
  • Setting up clients with MTD for VAT
  • Processing and confirmation of sign-up
  • More...

Making Tax Digital ― signing up for MTD

This guidance note examines how a business signs up for Making Tax Digital (MTD) for VAT.

For an overview of MTD more broadly, see the Making Tax Digital ― overview guidance note.

For in-depth commentary on the legislation, see De Voil Indirect Tax Service V5.101B.

How to sign up to MTD as a business

Where a business wants to sign up for MTD for VAT itself, the sign-up process is performed via the Government Gateway.

Remember that before signing up to MTD for VAT, a business must ensure that it has compatible software. For details of the software requirements, see the Making Tax Digital ― VAT ― returns and compliance guidance note.

A YouTube video on signing up for MTD for VAT can be found at Help and support for Making Tax Digital.

Information required for sign-up

The following information will be required by HMRC as part of the online sign-up process:

  1. business email address

  2. Government Gateway user ID and password (this can be created when a person uses the service)

  3. VAT registration number

  4. latest VAT return

  5. for sole traders ― national insurance number

  6. for companies / registered societies ― company registration number and unique taxpayer reference (UTR)

  7. for general partnerships ― postcode where registered for self assessment and UTR

  8. for limited partnerships ― postcode where registered for self assessment, company’s registration number and UTR

VAT record keeping

Processing and confirmation of sign-up

HMRC should send a confirmation email within three days to the business as evidence that it has signed up

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