HMRC expect that most businesses will be able to meet the current legal obligations of MTD effective from 1st April 2019. However, they also accept that it may not be possible for all businesses to meet these requirements.
As you will probably be aware, you don’t currently need to sign up for MTD if your taxable turnover is below the threshold of £85,000.
In addition, HMRC states that you will not have to follow the rules for MTD if they are satisfied that either:
• it’s not reasonably practicable for you to use digital tools to keep your business records or submit your VAT Returns because of age, disability, remoteness of location or for any other reason;
• you or your business are subject to an insolvency procedure;
• your business is run entirely by practising members of a religious society or order whose beliefs are incompatible with using electronic communications or keeping electronic records.
At Charlton Baker, we have successfully appealed to HMRC and claimed an exemption from MTD for a number of our clients, so if you feel that any of the exemptions above apply to you, and you need some help to avoid implementing the changes, please get in touch.