MTD for VAT delay for a select few
HMRC quietly updated their making tax digital guidance on 16 October to delay the mandating of a small minority of VAT registered businesses with more complex requirements until 1 October 2019.
The six-month deferral applies to VAT registered entities who fall into one of the following categories:
- Not for profit organisations that are not a limited company
- VAT divisions
- VAT groups
- Public sector entities who are required 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
HMRC estimate that the deferral will apply to around 3.5% of mandated VAT registered businesses.
The news has been welcomed by the charitable sector. However, many would have liked to see HMRC go further extending the deferral to those charities set up as a limited company and extending the deferral to a full 12 months for charities.
Please note for all other VAT registered businesses with turnover in excess of £85,000 the mandating date for MTD remains 1 April 2019.
If you would like to discuss this in more detail please email Victoria Dadswell or call us on 01772 821 021.
We have an array of content for Making Tax Digital which you can find following the links below:
To watch our short video series please click here.
To see our fact sheet on Individuals and Making Tax Digital please click here.
To see our fact sheet on Making Tax Digital and Small businesses and landlords please click here.
To see our fact sheet on Making Tax Digital and the VAT Digital Changes that are ahead please click here.