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Update: Making Tax Digital (MTD)

HM Revenue and Customs (HMRC) is introducing Making Tax Digital (MTD) for VAT from 1 April 2019.

Last week, HMRC announced their decision to delay the mandatory date for digital submissions of VAT returns to 1 October 2019 for the following business types:

  • Trusts
  • ‘Not for profit’ organisations that are not set up as a company
  • VAT divisions
  • VAT groups
  • Public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts)
  • Local authorities
  • Public corporations
  • Traders based overseas
  • Those required to make payments on account and annual accounting scheme users

Businesses unaffected by this deferral will still be required to submit their VAT return to HMRC through MTD compliance software by 1 April 2019. Further information on the requirements is given here.

The Government opened their pilot to the public for the new online service last week, with HMRC inviting over half a million businesses to try it ahead of the new requirements. The pilot was opened to businesses with straightforward tax affairs and will be extended to other business types over the coming months.

For more information about the new legislation and the software requirements for this, please click here or contact James Rimell.