MTD and Taxable Turnover MTD and Taxable Turnover
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  1. #1

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    Default MTD and Taxable Turnover

    Hi, with regards to the new MTD regs and threshold of 85k do you know if VAT should be added to turnover to calculate if above threshold ? i.e. for those part of flat rate vat scheme. Thanks

  2. #2

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    Are you sure FRS is the best for you? It isn't for many of us now.
    Nothing has changed around the way VAT works.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  3. #3

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    Quote Originally Posted by northernladuk View Post
    Are you sure FRS is the best for you? It isn't for many of us now.
    I thought the general opinion was that if you're NOT a limited cost trader then it is worthwhile. BUT being a NOT a limited cost trader requires either :
    - the opinion of someone other than a qualified accountant, or
    - actually having a trade of goods not usual with an IT contractor business



    Quote Originally Posted by northernladuk View Post
    Nothing has changed around the way VAT works.
    MTD has changed it a bit. But not much.

    If you're below the VAT threshold, but still registered then you don't need to use MTD (that's my reading anyway, but I don't care as my accountant mas provided MTD for no extra charge).
    See You Next Tuesday

  4. #4

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    Quote Originally Posted by Lance View Post
    MTD has changed it a bit. But not much.

    If you're below the VAT threshold, but still registered then you don't need to use MTD (that's my reading anyway, but I don't care as my accountant mas provided MTD for no extra charge).
    And anyone on FRS, irrespective of turnover, doesn't need to go MTD.

  5. #5

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    Quote Originally Posted by simes View Post
    And anyone on FRS, irrespective of turnover, doesn't need to go MTD.
    I'm not sure that's true?

  6. #6

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    Quote Originally Posted by matzie View Post
    I'm not sure that's true?
    VAT Notice 700/22: Making Tax Digital for VAT - GOV.UK

    Section 4.6

  7. #7

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    If you are VAT registered, you have to go MTD.

    Where in that section does it say otherwise?

    4.6 Flat rate scheme
    The following rule has the force of law:

    If you account for VAT using the Flat Rate Scheme:

    you do not need to keep a digital record of your purchases unless they are capital expenditure goods on which input tax can be claimed
    you do not need to keep a digital record of the relevant goods used to determine if you need to apply the limited cost business rate
    If your software does not include a Flat Rate Scheme setting, and does not allow you to include a rate of VAT other than standard, reduced, zero or exempt, then you will need to record the supply as either one standard rated supply and one zero rated supply. Alternatively, you can record the sale at one rate and correct the VAT through an adjustment at the end of the period, using the same method HMRC will allow you to use to correct the VAT on a mixed supply (see paragraph 4.3.2 above).Further information on the Flat Rate Scheme can be found in VAT Notice 733: Flat Rate Scheme for small businesses.

  8. #8

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    And by the way, as is the requested due process and due diligence on these here fora, I Did ask an accountant to clarify before posting.

    Mine was just a forwarding of links.

    Happy to be proved otherwise. Go for it...

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