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
the 1 April 2019

MTD for VAT: Filing begins for most businesses with annual turnover above the VAT threshold.

Periods beginning on
the 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

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