United Kingdom | Making Tax Digital Deferred Until October 2019 for Complex Businesses

On 16th October 2018, HMRC announced that the mandatory Making Tax Digital (MTD) implementation date for complex businesses, including those required to make payments on account, will be deferred by six months until 1st October 2019.

On 16th October 2018, HMRC announced that the mandatory Making Tax Digital (MTD) implementation date for complex businesses, including those required to make payments on account, will be deferred by six months until 1st October 2019.

This new regime, impacting UK VAT-registered businesses making taxable supplies above the £85,000 VAT registration threshold, comes into effect as of 1st April 2019,

HMRC’s updated guidance provides that the postponement “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”

Also, on 16th October 2018, the MTD VAT pilot scheme was launched, with over half a million VAT-compliant sole traders and companies strongly encouraged to join ahead of the new rules coming into force next year. Businesses whose MTD implementation date has been deferred may only sign up to the pilot scheme in the spring.

Please do get in touch with us now to discuss how these changes may affect you.