Making Tax Digital (MTD)-update
The MTD (Making Tax Digital) for VAT pilot arrangements have been extended by HMRC to 500,000 more businesses and HMRC have also deferred the statutory compulsory usage mandate for some businesses.
The MTD for VAT pilot is now open to sole traders and companies that are up to date with their VAT. Groups of companies are excluded for the time being, as are those that trade with the EU. There other exclusions to include: overseas businesses, completers of annual returns and those that make payments on account, the flat rate scheme users and finally newly VAT registered businesses.
Take a look at our initial article ‘MTD – what you need to know’ to learn more about the new system.
Mandating of MTD Delay
HMRC also announced that mandating of MTD will be delayed for six-months for some considered by HMRC as ‘more complex’ businesses. These businesses are trusts, not-for-profit organisations that are not set up as a company, VAT divisions, VAT groups, public bodies, local authorities, public corporations, traders based overseas, annual accounting scheme users and those that make payments on account.
MTD VAT Changes
MTD for VAT will be compulsory for most VAT-registered businesses with a turnover above £85,000 from 1st April 2019, The MTD for VAT pilot scheme has been private to a select group of businesses and their accountants since April this year but now most businesses with a VAT taxable turnover of at least £85,000 will be able to join. With a reported as many as 134,000 vat registered businesses in the South East of England ill-prepared for the new MTD for VAT rules it is recommended that businesses who can engage with the pilot should do so soon. By joining the HMRC MTD pilot scheme you are able to train your relevant employees, test the system and then let HMRC know of any remaining teething problems prior to the proposed MTD for VAT start date of 1st April 2019.
How HaesCooper Can Help
We at HaesCooper strongly advise those VAT registered businesses with an annual turnover above £85,000 to start planning immediately so that you are able join the HMRC pilot scheme well ahead of next April. HaesCooper can also help you find the appropriate MTD for VAT software provider – you may as well join the HMRC MTD for the VAT pilot scheme and ‘enrol now!’. Please don’t hesitate to contact our team for more information.
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