Making Tax Digital - Exempt businesses

From 1 April 2019, under the Making Tax Digital (MTD) initiative, all UK VAT registered businesses will be required to store and file their VAT transactional data digitally. However, several exemptions have been granted.

These include:

  • Businesses which have never crossed the VAT registration threshold, currently £85,000 per annum
  • Businesses under insolvency procedures
  • Members of religions whose beliefs prevent the use of electronic communications
  • Persons who may reasonably not be able to adopt compatible software for the reasons of disability, age, remoteness of location or any other reason
  • Businesses operating VAT margin schemes: second-hand goods; works of art; antiques collectors’ items
  • Businesses registered under the VAT Flat Rate Scheme
  • Businesses under the annual VAT return regime

Latest British news

EU moves new B2C VAT liabilities to marketplaces 2021

December 12, 2018

On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..

UK HMRC no-deal Brexit actions

December 10, 2018 

The UK’s HMRC has written to all VAT-registered businesses that trade with the EU to recommend immediate actions in the case of a no-deal Brexit on 29 March 2019. This is over 140,000 businesses.

UK Brexit VAT and customs update

November 26, 2018

The EU27 governments have now agreed the Brexit Withdrawal Agreement (WA) which sets out the terms of the UK’s exit from the EU on 29 March 2019....