Making Tax Digital Latest Making Tax Digital Delayed? HMRC has listened to stakeholders and their concern over whether some businesses will be able to comply with Making Tax Digital (MTD) by April 2019. HMRC has taken on board these concerns and delayed MTD until 1 October 2019 for VATregistered 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?
MTD delayed until 1 October 2019 for VAT-registered businesses with complex requirements.
HMRC has confirmed that MTD 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 • Local authorities • Public corporations • Traders based overseas • Those required to make payments on account and annual accounting scheme users HMRC expects that the deferral will only apply to around 3.5% of those affected from April 2019.
HMRC Contacting Xero Users HMRC has been contacting Xero users to remind them of their Making Tax Digital (MTD) obligations. If you are a Xero user, you should have received a letter from HMRC. The letter reminds businesses that from 1 April 2019, those VAT registered and with an annual taxable turnover above £85,000 will need to comply with MTD and the new VAT reporting requirements. For those that are affected, the letter asks you to speak to your accountant about signing up for MTD. For clients of Raffingers, where we file your VAT return, we have already set up the MTD account and are in the process of testing the platform. Our clients can therefore be rest
assured that at this time, no further action is required. This should be the same for most businesses, where their accountant files their VAT return. However, you should check with them first. For those that file their own VAT return, either through Xero or through the gateway, you will need to follow the instructions in the letter to sign up for MTD. Since 16 October, HMRC has been piloting its new VAT service and we are aware that Xero is currently in the process of beta testing its new VAT return for MTD connection too. This will be made available to Xero customers shortly.
For support with Making Tax Digital and making your business compliant, contact Lee Manning 020 3146 1604 | lee.manning@raffingers.co.uk Your Business Our Passion
5
