VAT deadline for MTD delayed for ‘small minority’ of firms

HMRC has confirmed that ‘a small minority’ of VAT-registered businesses with more complex requirements will not be required to switch to its flagship Making Tax Digital (MTD) for VAT regime at the deadline of 1 April 2019, but will be given a further six months to prepare.

According to an update on its MTD overview, the six-month deferral applies to organisations 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.

HMRC says the deferral will apply to around 3.5% of mandated organisations. They will now need to meet a later deadline of 1 October 2019, which it says is to ensure there is sufficient time to test the service with them in the pilot before they are mandated to join.

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