HMRC has extended the Making Tax Digital for VAT (MTDfV) pilot scheme to all eligible businesses, on the mandated compliance for VAT return periods beginning on or after 1 April 2019. However, MTDfV for some ‘more complex’ businesses has been deferred until 1 October 2019. This deferral applies to:
- Trusts
- Not-for-profit organisations which are 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.
Businesses with a taxable turnover below the £85,000 threshold are also being encouraged by HMRC to sign up for MTD or MTD for income tax on a voluntary basis. They would gain the benefits of MTD, improve their business processes, and gain a better view of how their business is performing via accountancy software.
HMRC has also reiterated that Brexit will not affect the introduction of MTDfV. For more information please contact us. But, remember with VAT mandation coming in from the 1st August, you really can’t afford to delay.