From April 2019, those businesses that are VAT-registered and have a turnover above the VAT threshold will be required to keep records digitally and use software to submit their VAT returns to HMRC.
The exception…
HMRC has listened to stakeholders and their concern over whether some businesses will be able to comply with Making Tax Digital by April 2019. HMRC has taken on board these concerns and delayed Making Tax Digital until 1 October 2019 for VAT-registered businesses with complex requirements. This gives these businesses more time to prepare.
So, what does HMRC mean by VAT-registered businesses with more complex requirements
HMRC has confirmed that Making Tax Digital will be deferred by 6 months for:
- Trusts
- ‘not for profit’ organisations that are not set up as a company
- 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 and annual accounting scheme users
I’m sure at the Budget we will find out if there are any further changes, but with these latest announcements, we are in no doubt that Making Tax Digital for VAT (at least) will be going ahead next year.
Making Tax Digital for all other taxes will apply from April 2020 – unless we hear otherwise.
If your business is not prepared for Making Tax Digital, get started today by downloading our guide on what you need to do here.
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Article by
Lee Manning
Partner
Lee.manning@raffingers.co.uk