When do you need to be MTD ready?

The date from which you will have to be MTD compliant will depend upon whether you are categorised by HMRC as a 'complex organisation' who will now benefit from a six month deferral. For these purposes HMRC categorise the following as complex:

  • trusts;
  • ‘not for profit’ organisations that are not set up as a company;
  • VAT divisions;
  • VAT groups;
  • those public sector entities required to provide additional information on their VAT return (ie Government departments, NHS Trusts);
  • local authorities;
  • public corporations;
  • traders based overseas;
  • businesses required to make payments on account; and
  • annual accounting scheme users. 

For those VAT registered businesses which are deemed to be complex then they will need to ensure that they are MTD compliant for the first VAT return beginning on or after 1 October 2019. All other businesses which are required to be registered for VAT will be still be subject to the original deadline and will need to ensure that they are MTD compliant for the first VAT return beginning on or after 1 April 2019.