Making Tax Digital for VAT is due to start in April 2019. Previously, this was going to affect all VAT registered businesses with turnover above the VAT threshold of £85,000.
However, HMRC have just announced a minor deferral, where the following businesses won’t come into the new regime until October 2019:-
- Trusts;
- ‘Not for profit’ organisations that are not set up as a company;
- VAT divisions;
- VAT groups;
- Public sector entities required to provide additional information on their VAT return (such as Government departments and NHS trusts);
- Local authorities;
- Public corporations;
- Traders based overseas;
- Those required to make payments on accounts; and
- Annual accounting scheme users.
Other businesses will still remain on the previous timetable.
MTD for VAT involves affected businesses keeping digital records, and being able to file their VAT returns directly from their software, or via compatible “bridging” software. If you don’t know if you are in compliance with the new rules, then please contact us for help.
