Question asked by Pete 6 years ago
My company turnover is normal above the VAT threshold. This year (to April) is likely to a few quid under.
So presumably I don't need to use MTD, is that right?
But I wonder is there any advantage to doing it anyway? Can I even do that if my turnover for 2018/2019 was £84,900 ? (next year is likely to be above again, touch wood.
Thanks for any advice.
Hi Pete,
You may not need to do MTD as you are below the VAT threshold but you would need to deregister for VAT as you are now below the threshold and that is if you can. I am not entirely certain about that so I would contact HMRC for guidance. You can still do MTD even if you are below the threshold though so long as you are VAT registered. The main benefit is that if you are likely to be above the threshold again in the near future you don't have to do anything as you will still be submitting VAT returns anyway as you are registered. I hope that helps.
Kind regards,
Mohamed.
Best answerHi Pete,
Oh my... I'm sorry to hear that you had a bad experience with HMRC. Perhaps try an email?
Kind regards,
Mohamed.
Oh well, ringing HMRC was a waste of time. After 10 minutes of negotiating through menus trying tom explain to a robot what my enquiry was about, I finally get into the queue to speak to a human, only two finally get another recorded voice saying Sorry we can't help you with your enquiry...click.
Hi Pete,
I agree, but as you are normally above the threshold I would imagine that just being ready for MTD is a worthwhile endeavour just cause it means you are ready for it should you go above again. I would agree with contacting HMRC as they can give the best advice regarding this.
Kind regards,
Mohamed.
My understanding is that the VAT threshold is compulsory above the threshold, but still voluntary for below. I'd prefer to stay VAT registered as (a) expecting turnover to go back up and (b) I'm better off.
It looks like MTD is only compulsory if you are above the VAT threshold, not if you are below the threshold but still VAT registered. And in that case if there is any advantage to MTD or just carry on as I am.
maybe I'd best contact HMRC
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