Making Tax Digital VAT deadline extended to 1 April 2021

HM Revenue and Customs (HMRC) has just confirmed that they are allowing an extension to the deadline for implementing full digital links for Making Tax Digital (MTD) for VAT, therefore extending the soft landing period.

HMRC has acknowledged that the impact of COVID-19 is creating extremely difficult times for all, and that they are providing all MTD VAT registered organisations with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place. Therefore, up until this time, the use of bridging software can continue.

This is good news for charities and other not for profit organisations that have complex VAT accounting, as it allows the current bridging software solution to continue for another year.

If you have any VAT related concerns, please contact your usual Moore adviser.
 

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