Delays to MTD for some Businesses

07 Dec 2018 10:15 AM | Mark Hill (Administrator)

HMRC have now put back the start date for Making Tax Digital (MTD) for some businesses and organisations until the first VAT period starting on or after 1 October 2019. This deferral applies to trusts, not-for-profit organisations (unless they are run through a limited company), divisional and group registrations, businesses based overseas, plus those required to make VAT payments on account or who use the VAT Annual Accounting scheme. 

Businesses with a VAT threshold below £1.35m per year can use the VAT Annual Accounting Scheme - and this is a good way to delay the MTD problem.

In addition, the recent House of Lords report, Making Tax Digital for VAT: Treating Small Businesses Fairly seeks to delay the start of MTD for all businesses. The report states that HMRC, taxpayers and the software market are unprepared for the implementation of MTD for VAT in April 2019. It recommends that the Government defers the date for mandating MTD for VAT for all businesses by at least one year, while encouraging businesses to join voluntarily. We will wait and see whether any of its conclusions are accepted by the Government.

Email us at info@myobusergroup.co.uk if you'd like us to help you simplify your path to MTD,

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