Making Tax Digital deadline deferred for certain businesses

The Making Tax Digital (MTD) for VAT deadline has been extended until October 2019 for certain businesses. Around 3.5% of mandated customers are affected, including VAT divisions and groups, trusts, unincorporated not-for-profit organisations and traders based overseas.

The later deadline was announced in response to concerns raised by businesses participating in the VAT pilot scheme. This will give affected businesses with more complex arrangements more time to prepare for their filing deadline.

The original deadline of 1 April 2019 still applies to most businesses with a taxable turnover above the registration threshold. From next year any business filing under VAT will need to provide quarterly VAT filings to HMRC and also record transactions digitally as well.

The MTD system does not change any of the filing requirements for VAT, so the same information will still need to be supplied to HMRC. However, organisations will need to use accounting software that allows them to file returns digitally. You can use spreadsheet software but you will need ‘bridging software’ to submit records to HMRC.

The latest timetable for MTD is as below. With many dates left to be confirmed, and deadlines moving as close as six months before, it would be sensible to monitor developments, and how they may affect your organisation.

Start date Tax
Periods beginning on and after 1 April 2019 MTD for VAT: Filing begins for most businesses with annual turnover above the VAT threshold.
Periods beginning on and after 1 October 2019 MTD for VAT: Filing begins for remaining complex and specialist businesses with annual turnover above the VAT threshold.
April 2020 – date not confirmed MTD for VAT: A possible rollout of MTD to all VAT registered businesses.
April 2021 – date not confirmed MTD for income tax: Filing begins for unincorporated businesses and landlords who pay income tax on profits
April 2022 – date not confirmed MTD for corporation tax


Growing list of MTD software suppliers

HMRC has been busy approving software suppliers ahead of the first Making Tax Digital (MTD) deadline in April 2019.

The latest additions to HMRC’s list of approved software suppliers means there are now 27 providers to choose from. Until recently there were only a few suppliers on the list, but HMRC has confirmed it is working with 150 suppliers in total, and that 40 aim to have their software ready during the first phase of the pilot.

If you are using the MTD system, you must be using approved accounting software which allows you to send regular income tax updates to HMRC. Keeping digital records is an essential part of the MTD project and is compulsory for any business or individual with taxable turnover above the VAT registration threshold – £85,000 until 2020.

Ward Goodman are able to provide a number of MTD solutions for your business.  You can speak to one of the team about our cloud based solutions on (01202) 875 900 or request a call back here.

The MTD timetable has seen many changes as the complexity of the project has pushed things back. However, with only nine months to go until the first filings, businesses will be keen to ensure their systems are ready well in advance.

Contact us to see if your existing supplier is on the list or to find out if they will be approved before the deadline. If you would like any advice on systems or how best to handle your accounts, then please get in touch.