UK and International Tax news
Making Tax Digital Update
Thursday 25th October 2018
HMRC has recently issued an update on plans for the introduction of Making Tax Digital [MTD] for VAT purposes and announced that there will be a six month deferral of the introduction for certain large businesses.
VAT registered businesses with a taxable turnover above the VAT threshold are required to use the MTD service to keep records digitally and use software to submit their VAT returns from 1 April 2019.
The exception to this will be those VAT registered businesses with more complex requirements. As part of planning for the VAT pilot, HMRC has continued to engage with stakeholders and listen to their concerns about business readiness for MTD.
HMRC has confirmed the decision to delay mandation for these taxpayers until 1 October 2019 to ensure sufficient time to test the service with them in the pilot before they are mandated to join.
The six month deferral applies to taxpayers who are trusts, ‘not for profit’ non corporate organisations, VAT divisions, VAT groups, public sector entities required to provide additional information on their VAT return (including Government departments and NHS Trusts), local authorities, public corporations, traders based overseas, those required to make payments on account and annual accounting scheme users.
HMRC say the deferral will apply to around 3.5% of mandated taxpayers.
If you would like further information on MTD, please contact Keith Rushen on 0207 486 2378.Contact Us