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

UK only 20% businesses Brexit customs ready

March 5, 2019

HMRC estimates that 245,000 businesses buy and sell goods with other EU27 states. When the UK leaves the Customs Union, 29 March, all movements of goods must be declared for customs, tariffs and VAT. This requires an EORI number (Economic Operator Registration Identification), which is shown on customs declarations etc.

HMRC warns digital companies on new Brexit VAT obligations

March 1, 2019

HMRC is writing to thousands of UK, US and other international sellers of digital services to warn them to now VAT register in another EU state in readiness for a no-deal Brexit. This covers their sales of e-services, apps, streaming media, online gaming and dating, e-books and software to EU consumers.

UK £135 small parcel VAT portal opens for Brexit

February 14, 2019

The UK’s HMRC has opened the registration portal for foreign delivery companies to register post-Brexit VAT on consumer good parcels below £135. This new regime will be triggered under the current default no-transition deal Brexit on 29 March 2019.