In the UK, if you are making taxable supplies and your turnover exceeds £85,000, you must register for VAT. In certain circumstances, even if your turnover has not exceeded the threshold, you can voluntarily register for VAT.
From April 2019, most businesses (there are a few that may be exempt) with taxable turnover above the VAT registration threshold must comply with the new Making Tax Digital (MTD) rules and use compatible software such as Quickbooks or Xero to file their VAT returns.
Under the MTD rules, some of the records that a business has to keep must now be kept digitally. More information on what these records are can be found here.
Once registered for Making Tax Digital, even if your taxable turnover drops below the threshold you still must remain registered for MTD and file your VAT returns through compatible software.
Businesses with taxable turnover below the threshold of £85,000 will need to register for Making Tax Digital for their first VAT return that commences after April 2022.
If you would like any advice or assistance then please contact us on 01271 815332 (Braunton) or 01271 441266 (Barnstaple) or use our online contact form to arrange a free consultation.