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 |
If you’re concerned about any aspect of Making Tax Digital, you can speak to a member of our team by clicking here >>, or learn more about our tax accounting services.
