MTD VAT Pilot is Now… Open to All
HMRC announced (10/1/2019) that their Making Tax Digital for VAT (MTDfV) pilot is now open to all those mandated to keep digitally compliant records and to file MTD-compatible VAT returns for return periods commencing after 31 March 2019.
In an email issued, HMRC stated: “this marks a significant milestone towards our ambition to become one of the most digitally advanced tax administrations in the world.”
HMRC boasts that over one hundred VAT-registered businesses are now signing up to the scheme on a daily basis, with more than 3,500 having already joined.
Testing time
Even though the majority will not need to file their first MTD-complaint return until early August, the department wants “as many eligible businesses as possible to join the pilot ahead of the mandation of the service in April”, as it will provide assurance that the service works for all types of customer.
What does it mean?
This means that all VAT-registered entities with an annual VAT-able turnover in excess of the £85,000 compulsory registration threshold – i.e. those mandated to onboard from April – will now have the chance to test their accounting systems prior to April.
A minority of compulsory registered businesses – those with the most complex VAT affairs – have had their mandation date deferred to their first return period starting on or after 1 October 2019.
VAT groups now able to join the pilot
HMRC has also opened its MTDfV pilot to VAT groups with immediate effect, in order to enable them to start testing the service – even though they are not mandated to join until October.
The department “will continue to update you as we open up the pilot to the remainder of the population who are mandated to join from October.”
Want to know more?
Further details can be found in HMRC’s updated guidance for businesses, updated guidance for agents, and the stakeholder partner packs on GOV.UK.