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MTD - What if I'm not VAT registered or have a taxable turnover below the threshold?

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This article explains what you need to do for Making Tax Digital (MTD) if you aren't VAT registered or have a taxable turnover below the threshold.


MTD was mandatory from April 2019 for businesses with a taxable turnover above the VAT registration threshold, currently £85,000. 

You're required to register for VAT and comply with MTD if:

  • At the end of any month, the value of your taxable supplies in the previous 12 months or less is over the registration threshold.
  • At any time, you expect the value of your taxable supplies in the next 30 day period alone, to go over the registration threshold.

What changed in April 2021?

If your business is voluntarily registered for VAT but you're not registered for MTD, the way you can submit your VAT returns is changed in April 2021. These changes mean that you either need to make manual VAT submissions using the HMRC website portal, or register for MTD.

What's changing in April 2022?

From 1 April 2022, all VAT registered businesses must sign up for MTD for VAT, even if their taxable turnover is below the VAT registration threshold. 

Find out more about MTD

To learn all you need to know about MTD, the following links include some useful information:

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