Making VAT Digital Update
Posted On October 26, 2018 By mhauk
We previously reported that from 1 April 2019, VAT registered businesses with a turnover above the VAT registration threshold (currently £85,000) will be required to keep digital records, and submit their VAT returns via the Making Tax Digital for Businesses (MTDfB) system.
HMRC has announced a delay to the introduction of mandatory Making Tax Digital (MTD) of six months, until 1 October 2019, for a small group of businesses with more complex requirements.
The 6-month deferral applies to businesses which fall into one of the following categories:
- Unincorporated ‘not for profit’ organisations
- VAT divisions and VAT groups
- Public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts)
- Local authorities
- Public corporations
- Traders based overseas
- Those required to make payments on account
- Annual accounting scheme users
For all other businesses the commencement date for MTD is still 1 April 2019.
Either way VAT registered businesses with turnover below the registration threshold will not be mandated to use the system until April 2020 at the earliest, however, they can voluntarily choose to do so beforehand.
If you have any questions or if you would like to discuss any of the issues raised in more detail, please contact Hannah Farmborough or call on 0207 429 4147 to be put in contact with a member of our VAT team.
This article originally appeared on the blog of our member firm, Larking Gowen.