New VAT registrations and Making Tax Digital

The process for registering for VAT is unchanged. A business that needs to (or chooses to) register for VAT for the first time should follow the current process to register for VAT and the VAT registration guidance on

If the taxable turnover of the business in the previous 12 months is over the VAT registration threshold of £85,000 the business will also need to comply with the MTD for VAT requirements. This includes following the steps to sign up to MTD for VAT as explained in the ICAEW guidance for businesses and agents.

Having to complete two separate processes, registering for VAT and then signing up to MTD for VAT, has the potential to cause delay and difficulty. A business cannot sign up to MTD until the VAT registration is complete. We understand that HMRC is developing functionality that will allow businesses to register for VAT and sign up to MTD in a single, combined process but there is currently no timetable for when such a service will be introduced.

If you need help with either of these processes please contact


Noel Guilford, Principal at Guilford Accounting
Noel Guilford is the principal of Guilford Accounting a small business accountancy practice specialising in advising owner-managed businesses on current accounting, finance, and tax matters. You can reach him via email at or by phone at 01244 660866. He is the author of the 'Figure it out - an entrepreneurs guide to understanding your business numbers' which you can obtain by visiting​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ His latest book, How to Build a Successful Business' will be published in 2018.

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