First MTDfV quarterly return due by 7 August 2019
23 July 2019
Published by: Amit Dev - Tax Technology lead
“It’s almost time to submit my first MTDfV quarterly return, would be great to understand the actions I need to take?”
With MTDfV live for almost four months now, we are fast approaching the deadline for submission of the first (non-pilot) MTDfV returns for businesses that file their VAT returns on a quarterly basis. The deadline is 7 August 2019 for the quarter that ended on 30 June 2019 and, prior to submitting your first quarterly MTDfV return, you should have already done the following:
- Obtained MTDfV compliant software that is able to submit VAT returns under the new method (this could be as simple as an Excel spreadsheet plus ‘bridging software’ which HMRC has confirmed is viewed as a long-term solution)
- Signed up to HMRC’s digital platform
- Authorised your MTDfV software provider to submit MTDfV returns on your behalf
- Received your confirmation email from HMRC confirming that you are ready to submit MTDfV returns.
Hopefully, the first submission will be uneventful. However, we have listed below (in no particular order) some issues that businesses already filing under MTDfV have faced:
- HMRC sign-up confirmation emails not being received
- HMRC sign-up confirmation emails not including a VAT Registration Number (‘VRN’) or business name identifier (causing some MTDfV sign-up tracking issues for businesses with multiple VAT registrations)
- A time lag of up to 24 hours after a confirmation email has been received before the Application Programme Interface (API) software can be used
- Difficulty in getting support from HMRC, either through the MTD support desk (which you can only access via the main VAT helpline) or via Customer Compliance Managers.
Take action if you can’t see that a return is due
We have noticed an increase in businesses stating that they “are unable to see that a return is due” in their VAT account. Following conversations with HMRC, it has come to light that some businesses have been incorrectly categorised as a ‘missing trader’ and their VAT account has been suspended as a result. Therefore, businesses that are unable to see that a VAT return is due for submission in their VAT account should contact HMRC immediately to obtain confirmation that a VAT return is not due and to understand what steps to take to ensure that their VAT account is reactivated. Some businesses in this situation have found that their current VAT return period has then been extended by several months by HMRC, effectively deferring their MTDfV start date.
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