11. What if I go over the threshold temporarily?
Once you have reached the VAT registration you will need to comply with the requirements of MTD, even if your turnover subsequently falls below the VAT registration, unless you meet one of the other exemptions set out at 5 above.
You would have to tell HMRC’s VAT Registration Service within 30 days when you have a requirement to be VAT registered.
12. Will there be penalties for not complying with MTD?
Yes, failure to comply with MTD will incur penalties.
The specific details of how the penalty regime for MTD will work is currently under consultation and options include a points-based penalty system where an accumulation of points will incur a monetary charge.
13. Is there a soft-landing period to give me time to get used to the new system?
MTD goes lives on the 1st April 2019. There is no general ‘soft landing’ period
But for businesses which hold their digital records in more than one system, the requirement to have these system digitally linked will not be mandated until April 2020 (the ‘soft landing’ period -without application of penalties) to allow those businesses extra time to update legacy systems to be fully compliant.
