10. My business is not VAT registered and I don’t know if I will earn £85,000 this year. What should I do?
MTD is only mandatory for businesses with a turnover above the VAT threshold – currently £85,000.
You will however need to monitor your taxable turnover. Software can help you monitor this monthly to help you comply with VAT registration requirements.
You will be required to VAT register and come within the scope of MTD if:
• at the end of any month, the value of your taxable supplies in the previous 12 months or less is over the registration threshold
• at any time, you expect the value of your taxable supplies in the next 30 day period alone, to go over the registration threshold.
Businesses below the VAT registration can also choose to waive exemption if they wish to follow the requirements of MTD voluntarily.