In the middle of October, HMRC opened the Making Tax Digital for VAT pilot. This is now available for nearly 70% of those mandated to file MTD-compliant VAT returns for all future VAT-return periods starting after the 31 March 2019.

The requirement to join VAT-MTD applies to all VAT registered entities with a VAT-able turnover of above the £85K compulsory VAT-registration threshold. This applies whether they file their returns on a monthly or quarterly basis.

Businesses wishing to join HMRC’s pilot must complete an online registration process, they must keep their VAT records digitally from the first day of their next VAT Return period, and they must submit subsequent VAT returns using MTD-compliant software such as QuickBooks Online.

There is a six-month deferral of mandation for the approximately 3.5% who have complex requirements. These include trusts, not for profits, VAT divisions and groups, local authorities, overseas traders, and annual accounting scheme users. Pilot testing for these groups is expected to open in Spring 2019.

HMRC have released a timeline with more details on Pilot eligibility, which you can view here.