HMRC has extended its Making Tax Digital for VAT (MTDfV) pilot scheme to all eligible businesses.
For most businesses, compliance with the regulations is mandated for VAT return periods beginning on or after 1 April 2019. However, Making Tax Digital for VAT for some ‘more complex’ businesses has been deferred until 1 October 2019. This deferral applies to: trusts; not for profit organisations not set up as companies; VAT divisions; VAT groups; public sector entities such as government departments and NHS Trusts, which have to provide additional information on their VAT return; local authorities; public corporations; traders based overseas; those required to make payments on account; annual accounting scheme users.
Commenting on theMaking Tax Digital for VAT pilot scheme, Clare Sheehan, Deputy Director for Making Tax Digital for Business, said:
‘The Making Tax Digital pilot is now available to all businesses who will need to use the service from April. This marks a significant milestone towards our delivery of a modern tax administration.’
‘We encourage all eligible businesses to join and try out the service before they are mandated to use it.’
HMRC has also confirmed that Brexit will not affect the introduction of Making Tax Digital for VAT. In a recent letter, Jim Harra, Deputy Chief Executive of HMRC, wrote:
‘Our system is already live and by the end of February we’ll have written to every affected business, encouraging them to join the thousands of others who have registered.’
Please get in contact us for help with Making Tax Digital for VAT.
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