Newsletter issue - February 2019.
The Making Tax Digital (MTD) pilot has been opened up to all businesses that will be mandated from April 2019 (i.e., the first VAT accounting period starting on or after 1 April 2019) to use compatible software to submit information directly to HMRC.
The pilot was opened at the end of 2018 to partnerships and VAT Flat Rate Scheme (FRS) users, and the following entities are now also able to join:
Interestingly, HMRC have noted that, as at 10 January 2019, more than 3,500 businesses had joined the pilot. However, the number of businesses that will be required to join from April 2019 is approximately 1.1m, meaning there is still plenty to be done before the final 'go live' date.
The deadline mandatory filing under MTD will be different for many businesses, depending on when they file their VAT returns. Businesses (or their agent on their behalf) need to be using MTD for VAT:
This can give quite a short timeframe, particularly for businesses that file monthly returns.
The ICAEW Tax Faculty has received reports of unexpected rejections of applications to sign up for the pilot, but this is expected to improve following the relaxation of the eligibility criteria. Any business or agent that encounters a problem during the sign up process is advised to use the 'Get help with this page' link on the relevant screen. This will raise a ticket with HMRC's helpdesk who will get in touch to resolve the issue (i.e., it is a way to get specific help rather than just a way of raising a general issue with a gov.uk page).
For further information, see Making Tax Digital: how VAT businesses and other VAT entities can get ready