HMRC have announced delayed implementation of the Making Tax Digital for VAT (MTD) rules for certain businesses. Whilst most businesses trading above the VAT registration threshold will have to comply with the new MTD rules from 1 April 2019, certain businesses have been given a further six months to prepare.
If your business falls into one or more of the following categories, MTD will not become compulsory until your first VAT return period commencing on or after 1 October 2019:
- VAT group and divisional registrations;
- Businesses based overseas;
- Annual Accounting scheme users;
- Businesses in the Payments on Account (PoA) scheme;
- Not for profit organisations which are not set up as a company; and
- Certain public sector entities, local authorities and public corporations
Businesses trading above the VAT threshold, which do not feature in the above list, must be MTD compliant in time to submit their first VAT return with a period commencing on or after 1 April 2019. The deadline is fast approaching, so if you have not yet started preparing for MTD, you should act now.
How can we help?
Menzies LLP has a great mix of software and VAT expertise to help your business get MTD compliant. We have already helped hundreds of clients move their accounting records online, apply best practice processes and controls, and take advantage of the associated efficiencies and technologies. MTD for VAT provides yet another compelling reason to review your business’ record-keeping and ‘future-proof’ your systems. Through tailored guidance and training, we can provide bespoke support to help you turn digital. We have already seen these benefits become reality for hundreds of clients that have moved their records on to a digital platform.