Making Tax Digital -- without being VAT registered

Thank you for reaching out to the Community, William.

I'd be glad to provide insight about Making Tax Digital (MTD) which is not VAT registered in QuickBooks Self-Employed (QBSE).

To begin with, those businesses that aren't VAT registered should not activate the VAT within QuickBooks. MTD is only required when you're VAT registered.

I'll add this article to help you prepare your Self Assessment for income tax return with the checklist: Self Assessment for Income Tax checklist for QBSE.

Let me know if you have other questions or concerns about MTD. I'll be around to provide further assistance to you.

Thanks but sole traders have to go to MTD before April 2026 and my accountant is advising me to switch now so I know the old rule about VAT can't apply. Sage tells me I can move to MTD right away too, so can I have the HMRC filing and just not select any setting with VAT in the name?

Thanks for getting back in the thread, William. Allow me to provide clarification on Making Tax Digital (MTD).

Her Majesty's Revenue and Customs (HMRC) introduced MTD to assist individuals and businesses in filing their taxes correctly. One of the recognised software that can help you prepare, track, and file VAT returns is QuickBooks. 

If your business isn't VAT-registered, you won't need to comply with MTD until April 2024 because that's when MTD for Self-Assessment Income Tax will be introduced for the self-employed and landlords with an annual income of £10,000 or more. 

For further information, refer to this link: Making Tax Digital for VAT Software | QuickBooks UK.

Moreover, I'll add this article to guide you on what you need to complete your tax return, including deadlines: Self Assessment for Income Tax checklist for QuickBooks Self-Employed.

Please hit reply if you have further questions about tax compliance or management. I'll be happy to lend a hand. Take care!

You still haven't addressed how people can use this feature who aren't VAT registered. 

How can we use this and comply if we're not VAT registered??

Let me share some details about Making Tax Digital (MTD), Krichter.

Making Tax Digital (MTD) is only mandatory for VAT-registered businesses. If you're not VAT registered, you do not need to activate VAT features in QuickBooks. MTD for Self-Assessment Income Tax will be introduced for self-employed individuals with an annual income of £10,000 or more starting April 2024. You can begin preparing now to ensure compliance.

Additionally, ensure your QuickBooks Self-Employed account is properly set up to track your income and expenses. This includes filling out your tax profile accurately to help with estimated tax calculations.

For more details, see this link: Exemptions for Making Tax Digital (MTD) for VAT.

Let me know if you have other questions about MTD. I want to ensure everything is taken care of for you.