The changes introduced in the UK from April 2019 under Making Tax Digital (MTD) for VAT are compulsory for businesses that:

• Are VAT registered, and
• Have a taxable turnover above the VAT registration threshold, currently £85,000.

NOTE: From April 2022, MTD will also apply to VAT registered businesses which have a turnover below the threshold.

HMRC has stated that there are  exemptions for some organisations, including:

• Where religious beliefs are incompatible with the regulation requirements.
• Where it isn't reasonably practicable to use the required digital tools, for example, remoteness of location.
• Businesses subject to an insolvency procedure.

If you think you may be exempt from MTD, you should contact the HMRC VAT Helpline to make alternative arrangements.

Find out more about MTD

• Watch our free MTD webinar
• Sage Making Tax Digital Help Centre
• Gov.uk - Making Tax Digital for VAT