HMRC defers Making Tax Digital for those with complex VAT affairs

By October 23, 2018Blog

Last week, HMRC opened its pilot system for Making Tax Digital for VAT ahead of the 1 April ‘go live’ date.  However, at the same time, they announced that for certain businesses with complex VAT affairs, the filing of VAT returns using the new online system will be delayed until 1 October 2019.

HMRC only expect the deferral to apply to approximately 3.5% of mandated customers, which will be those that fall into one of the following categories:

  • Trusts
  • ‘Not for profit’ organisations that are not set up as companies
  • VAT groups
  • VAT divisions
  • Public sector entities that are required to provide additional information on their VAT return
  • Local authorities
  • Public corporations
  • Traders based overseas
  • Those required to make payments on account (ie large companies that owe more than £2.3m in VAT in any period of 12 months or less)
  • Annual accounting scheme users

The 1 April launch date is still expected to apply for all other mandated customers.  The pilot system will open for those customers listed above during Spring 2019 before the new launch date of 1 October.

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