The way VAT registered businesses submit VAT returns will change from 1 st April 2019.
From this date if your taxable turnover is above the VAT threshold (85k) you must submit via your accounts software package.
The current method of submitting VAT returns will be redundant and you will only be able to submit VAT returns from 1 st April 2019 by using compatible software.
What this means is that all business records and accounts have to be kept digitally in a software program on a computer.
The difference under MTD is that the software which businesses use must be capable of keeping and maintaining the records which will prepare your VAT return.
If you submit VAT returns monthly your first submission under MTD will be your April VAT return which has to be submitted by 7 th June 2019.
If you submit quarterly returns 1 st March 2019 to 31 May 2019, your first submission date under MTD will be for quarter 1 st June 2019 to 31 st August 2019.
If you are VAT registered but your taxable turnover has never exceeded the VAT threshold (85k) you will be exempt from MTD.
You will need to keep an eye on your taxable turnover, especially if you think it is close to the VAT threshold.