I have a client who is VAT Registered and the turnover is 70200. It has gone up by 8000 from last year and they expect it to increase this year.
What happens if they reach the 85000 on the 3/4 VAT Return and need to register for MTD? Do they need further software as theirs isn't MTD Compliant and will they then need to use 2 softwares for the year end accounts?
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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
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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.