Reminder: Making Tax Digital for VAT

Don’t forget the requirements under Making Tax Digital for VAT (MTDfV) come into force for all VAT registered businesses with turnover above the VAT registration threshold for VAT periods commencing on or after 1 April 2019. 

However, HMRC wants to spend more time preparing its systems for organisations with more complex VAT affairs and has stated that mandatory filing under MTDfV will be deferred until 1 October 2019 for the following VAT registered entities:

  • Trusts and unincorporated charities
  • Local authorities and some public sector entities, including Government departments and NHS Trusts
  • Public corporations 
  • Overseas businesses which are UK VAT registered but do not have an establishment in the UK
  • Businesses with one or more of the following VAT profiles: 
    • VAT group registration
    • Divisional VAT registration
    • those required to make payments on account
    • those who use the annual accounting scheme.

HMRC has recently written to businesses to notify them of their obligation to use MTDfV and confirm whether they fall into the April or October phases of the rollout.