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Latest on Making Tax Digital for VAT

HMRC says it is being ‘lenient’ on MTD

At Civil Society Media’s Charity Finance Summit in October, HMRC told charities it was not rigidly enforcing Making Tax Digital. HMRC understands that MTD is a huge change for charities and is being ‘very lenient’ on non-compliance penalties as long as they are making a genuine attempt to comply with MTD.*

According to Verna Gellvear from HMRC’s customer readiness and external stakeholder team, HMRC is being ‘quite lenient’ with exemptions and charities should not be put off applying for them if they think they might qualify, although it was highlighted that being too old will not be accepted.

Expensive software is not needed and if charities have not yet got the ability to submit their VAT returns to HMRC through compatible software, then bridging software may be the answer or compatible (API enabled) spreadsheets.

Do you need help with MTD?

At Mitchell Charlesworth we are offering an MTD VAT return submission service to ensure charities who do not yet have compatible software or would prefer to maintain their current VAT recordkeeping process are able to comply with MTD.

Charities can choose from a submission only service or upgrade to include the review of the return prior to submission.  Opting for the review of the VAT return will include ensuring the VAT return is correct and making suggestions as to how the process can be updated to comply when the soft-landing period ends, and the VAT return process is required to be more automated.

Please contact VAT partner Alison Birch if you would like further information about MTD and how it might impact on your charity.

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Charity Newsletter February 2020