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Making Tax Digital timeline

Mike Wakeford

You will be aware that HMRC is moving forward with their digitisation of taxpayer VAT and Income Tax reporting requirements, under their much publicised Making Tax Digital (MTD) initiative. Below you will find the most recent announcements made by HMRC on this issue.
 
Mandatory filing of VAT returns using MTD compliant software will commence for all returns submitted after 1 April 2019. This will apply to VAT registered traders with turnover in excess of the present VAT registration limit of £85,000.
 
Traders in the following list can apply for a six month deferral, to October 2019 from this requirement. Those eligible for the deferral are:
 
  • trusts,
  • ‘not for profit’ organisations that are not set up as a company,
  • VAT divisions,
  • VAT groups,
  • those 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.
 
MTD process will not be rolled-out to other taxes (Income Tax and Corporation Tax for example) until April 2020 at the earliest.
Finally, a reminder that our Southampton MTD seminar is taking place on 22nd November at the Harbour Hotel and we have limited spaces left. If you have not already signed up to attend, you can do so here: http://bit.ly/2NXjUh5