Discussion
Eric Mc said:
No. It is up to the reader to make the change. For most smaller VAT registered businesses, HMRC will be unable to tell from quarterly returns whether the business is
trading over the £85k threshold. They have also said they will apply a “light touch” to any penalties.
At the moment it's only asking people to register for the pilot.trading over the £85k threshold. They have also said they will apply a “light touch” to any penalties.
Clockwork Cupcake said:
Eric Mc said:
The pilot should have ended on 1 April. The system is supposed to be compulsory from that date.
Indeed. It does seem rather odd to still refer to something as a pilot or Beta after it is compulsory. It doesn't exactly inspire confidence. therefore any current MTD returns are still in the pilot...
akirk said:
As I understand it the first mandatory MTD periods start on the 1st April, so no mandatory MTD returns are required until after that period end at the end of this month...
therefore any current MTD returns are still in the pilot...
REGISTERING now should not be flagged as part of the pilot. Once you go past 1 April, all registrations fall within the compulsory period. It is grossly misleading to tell those REGISTERING now that they are in some sort of "pilot" scheme. They are not - and it typical of the crass ineptitude displayed by HMRC in this whole sorry saga.therefore any current MTD returns are still in the pilot...
HMRC has announced that 2/3 of business who have applied for exemption for VAT MTD have done so on "Turnover" grounds. The stupid thing is, a business that is exempt from VAT MTD on turnover grounds is not required to apply for exemption from VAT MTD. They are automatically exempted.
They have also clarified that the definition of the £85,000 turnover threshold for VAT MTD exemption is different to the £85,000 turnover threshold for compulsory VAT registration.
As ever, it's not straightforward.
They have also clarified that the definition of the £85,000 turnover threshold for VAT MTD exemption is different to the £85,000 turnover threshold for compulsory VAT registration.
As ever, it's not straightforward.
Eric Mc said:
HMRC has announced that 2/3 of business who have applied for exemption for VAT MTD have done so on "Turnover" grounds. The stupid thing is, a business that is exempt from VAT MTD on turnover grounds is not required to apply for exemption from VAT MTD. They are automatically exempted.
Wait, hold on. I'm slightly confused by this statement. Are you saying that you can continue to run a VAT-registered business outside of MTD on turnover grounds, or are you saying that applying for exemption from MTD will de-register you for VAT?Clockwork Cupcake said:
Eric Mc said:
HMRC has announced that 2/3 of business who have applied for exemption for VAT MTD have done so on "Turnover" grounds. The stupid thing is, a business that is exempt from VAT MTD on turnover grounds is not required to apply for exemption from VAT MTD. They are automatically exempted.
Wait, hold on. I'm slightly confused by this statement. Are you saying that you can continue to run a VAT-registered business outside of MTD on turnover grounds, or are you saying that applying for exemption from MTD will de-register you for VAT?The problem is that some businesses that are trading below the £85,000 threshold think they have to specifically apply to HMRC NOT to submit VAT MTD returns. They don't. As long as they are trading below the £85,000 level, they can stay on the old system automatically.
The added complication is that this £85,000 threshold is defined a bit differently when you are using it to decide whether you should be VAT registered at all or when you are using it to see if you are exempted from VAT MTD.
Apologies for asking this and not trying to find out the answer myself, but it's late.
Currently registered for VAT and have been since 2007, up until now turnover has been a mix of UK, European and Rest of World.
Going forward, there is unlikely to be much UK turnover (if any), maybe 10k PA European, so I guess we could deregisiter for VAT.
Consultancy business so nothing other than a bit of office expenses to reclaim VAT on.
Does this mean that we are exempt MTD as t/o is below £85k PA?
Currently registered for VAT and have been since 2007, up until now turnover has been a mix of UK, European and Rest of World.
Going forward, there is unlikely to be much UK turnover (if any), maybe 10k PA European, so I guess we could deregisiter for VAT.
Consultancy business so nothing other than a bit of office expenses to reclaim VAT on.
Does this mean that we are exempt MTD as t/o is below £85k PA?
Edited by sgrimshaw on Monday 3rd June 22:25
sgrimshaw said:
Apologies for asking this and not trying to find out the answer myself, but it's late.
Currently registered for VAT and have been since 2007, up until now turnover has been a mix of UK, European and Rest of World.
Going forward, there is unlikely to be much UK turnover (if any), maybe 10k PA European, so I guess we could deregisiter for VAT.
Consultancy business so nothing other than a bit of office expenses to reclaim VAT on.
Does this mean that we are exempt MTD as t/o is below £85k PA?
If your correctly defined 12 monthly turnover is below £85,000, then you are not obliged to switch to VAT MTD. Just make sure that the turnover you are using to arrive at your "Under £85,000" amount is calculated under the VAT MTD criteria (which is a bit different to the Compulsory VAT Registration Threshold criteria.Currently registered for VAT and have been since 2007, up until now turnover has been a mix of UK, European and Rest of World.
Going forward, there is unlikely to be much UK turnover (if any), maybe 10k PA European, so I guess we could deregisiter for VAT.
Consultancy business so nothing other than a bit of office expenses to reclaim VAT on.
Does this mean that we are exempt MTD as t/o is below £85k PA?
Edited by sgrimshaw on Monday 3rd June 22:25
Tried to register earlier this week to do April return (monthly) - deadline this week.
Got the message
“Unable to set you up because close to a busy period or Direct Debit payment
Please submit with old method, we will not fine you on this occasion
Come back & register before May return due”
Got the message
“Unable to set you up because close to a busy period or Direct Debit payment
Please submit with old method, we will not fine you on this occasion
Come back & register before May return due”
AndyAudi said:
Tried to register earlier this week to do April return (monthly) - deadline this week.
Got the message
“Unable to set you up because close to a busy period or Direct Debit payment
Please submit with old method, we will not fine you on this occasion
Come back & register before May return due”
I think that is something to do with Direct Debit legislation around numbers of days notice for DD etc. yet another thing not explained properlyGot the message
“Unable to set you up because close to a busy period or Direct Debit payment
Please submit with old method, we will not fine you on this occasion
Come back & register before May return due”
akirk said:
I think that is something to do with Direct Debit legislation around numbers of days notice for DD etc. yet another thing not explained properly
We’ve had DD set up for years though, & 11/12ths of the time are actually in a repayment situation! Our 1/12th payment will Be next month so i’d better not cock it up with the new software!AndyAudi said:
We’ve had DD set up for years though, & 11/12ths of the time are actually in a repayment situation! Our 1/12th payment will Be next month so i’d better not cock it up with the new software!
It's a different system though so they have to cancel the old mandate and create a new one. You need to sign up 15 days or earlier before the due date and you cant sign up for a period of 10 days after the due date.Gassing Station | Business | Top of Page | What's New | My Stuff