MTD for VAT – Pilot Extended to all Eligible Businesses
At Harvey Telford and Bates, we provide specialist MTD support to all of our clients and their businesses to make sure they are fully aware of the latest requirements.
If you run a VAT-registered business with a taxable turnover above the VAT registration threshold (currently £85,000) you are required to keep digital VAT business records and send returns using Making Tax Digital compatible software.
For most businesses, compliance with the regulations is mandated for VAT return periods beginning on or after the 1st April 2019. However, MTD for some ‘more complex’ businesses has been deferred until the 1st 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, and annual accounting scheme users.
Clare Sheehan, Deputy Director for MTD for Business, commented on the pilot scheme: “The MTD 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.”
Director at Harvey Telford and Bates, Danielle Harvey stated: “We provide support and guidance to all of our clients to make sure they fully understand the Making Tax Digital for VAT regulations and to make sure they comply correctly. Please get in touch with a member of our team today for a full update and continuous support throughout the process.”
HMRC has also reassured that Brexit will not affect the introduction of MTD.
Jim Harra, Deputy Chief Executive of HMRC stated: “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.”