Making Tax Digital for VAT (MTDfV) has been a known entity since the summer of 2017, but the lead in process has been quite drawn out. It is only relatively recently that the details have been fleshed out and software providers have begun to demonstrate their systems ahead of the 1 April 2019 commencement date.
It has now been confirmed that HMRC will delay the implementation of MTDfV for ‘more complex’ businesses for six months, with the go live date for mandatory use for certain organisations being deferred to 1 October 2019. As such, trusts, unincorporated charities, public corporations, overseas businesses who are UK registered but who have no establishment in the UK, and companies who use group or divisional registrations, make payments on account, or use the annual accounting scheme are all now deferred.
The House of Lords published a report in November 2018 calling for a delay in implementation of at least 12 months. However, they also commented that HMRC and the government have failed to listen to concerns to date, and it appears that their representations have again fallen on deaf ears. The move to MTDfV, therefore continues apace. Whether your go-live date is 1 April or 1 October next year, time is running out to prepare for what will be quite large-scale changes to the reporting regime. Does your current accounting process allow MTDfV to be implemented easily? What data will you need to share with HMRC, and how confident tare you in the quality of that data? Do you need any extra software in order to enable MTDfV for your business?
Hazlewoods can assist you in assessing how prepared you currently are for MTDfV, and help identify any areas where you may still need to prepare. Our experts can discuss your software needs with you, helping to identify any breaks in the digital links that MTDfV requires, and supporting you to bridge those gaps. Where MTDfV may be onerous or impractical, we can assist in negotiating with HMRC to find alternative working methods.