HMRC recently published a notice giving guidance on the digital record keeping and return requirements for Making Tax Digital (MTD) for VAT. This updated version of VAT Notice 700/22 on 18 January 2019 explains the additional rule with regard to the ‘soft landing period’ afforded to businesses who need to comply with the MTD rules from 1 October 2019 and not 1 April 2019.
Initially it was thought that those businesses would only be afforded a six-month soft landing period. However, it would appear now that those businesses have a full 12-month period to get digital links put in place.
This will be welcome news for such businesses in that they have additional time to become compliant for MTD. This is set out in paragraph 3.2.1.1 of the public notice (700/22).
If you’re not using online software yet, the prospect shouldn’t worry you. It’s an opportunity to become more efficient and more profitable: both things we are pleased to support our clients with. If you would like to discuss MTD and your options, please get in touch with your usual BKL contact, find some more advice on our blog or use our enquiry form.