Hi,

Thanks for using Sage City.

Once you've reached the VAT registration threshold you must comply with the requirements of Making Tax Digital (MTD). This is still the case even if your taxable turnover subsequently falls below the threshold, unless you meet one of the other exemptions detailed in the HMRC VAT Notice 700/22: Making Tax Digital for VAT.

You can see common questions on MTD here

If this has answered your question please click More > Verify Answer.

Regards,

Ian

Sage UKI

They are below the £85000 at the moment but they may go above during the last VAT Return if sales increase. If that is the case what would they need to be MTD compliant and what software would it be for the last VAT Return? We would then for the new year put them on a new software that is MTD Compliant,

They are below the £85000 at the moment but they may go above during the last VAT Return if sales increase. If that is the case what would they need to be MTD compliant and what software would it be for the last VAT Return? We would then for the new year put them on a new software that is MTD Compliant,

Sage 50cloud Accounts v24.2 and above allows you to submit your VAT Return via the old and new method so would support you with either way when you come to do your submission.