HMRC have today (17 October 2018) announced that for a small minority of VAT registered businesses with more complex requirements, Making Tax Digital for VAT will be delayed until 1 October 2019.
We have produced a helpful Making Tax Digital for VAT timeline below:
Open to sole traders and companies (except those which are part of a VAT group or VAT Division) provided they are up to date with their VAT. Those who trade with the EU, are based overseas, submit annually, make payments on account, use the VAT Flat Rate Scheme, and those newly registered for VAT that have not previously submitted a VAT return, are unable to join at this point. Those customers with a default surcharge within the last 24 months will be able to join the pilot by the end of October 2018.
Private testing begins with partnerships, those customers that trade with the EU, and users of the Flat Rate Scheme.
Open to other sole traders and companies who are not up to date with their VAT and businesses newly registered for VAT that have not previously submitted a VAT return.
Open to partnerships and those customers that trade with the EU.
Pilot open for Making Tax Digital customers that have been deferred.
Making Tax Digital mandated for all customers (except those that have been deferred).
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Making Tax Digital mandated for customers that have been deferred. The 6 month deferral applies to customers who fall into one of the following categories: 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. The deferral will apply to around 3.5% of mandated customers.
