Making Tax Digital: 12 month soft landing period for taxpayers subject to deferred mandation

By January 22, 2019Blog

Hot off the press following our Making Tax Digital for VAT seminar just last Thursday (17th January), HMRC has announced further changes to the soft landing period for businesses that are not required to operate Making Tax Digital until 1 October 2019.

HMRC has updated VAT Notice 700/22 Making Tax Digital for VAT. It now includes confirmation in section 3.2.1.1 that for taxpayers subject to delayed mandation from 1 October 2019, the digital links ‘soft landing period’ will also be 12 months, i.e. the taxpayer has until its first VAT return period starting on or after 1 October 2020 to put digital links in place.

Taxpayers falling within the delayed mandation rules include:

  • 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.

HMRC has been contacting taxpayers who are subject to the deferred mandation to confirm their position.  If you believe that you qualify but have not yet heard from HMRC or would like further assistance with Making Tax Digital contact Joanne Powell – joanne.powell@murrayharcourt.com.