Given the pressures on self-employed people and small business owners at the moment, we’re pleased to see that there’s no need to worry about new Making Tax Digital (MTD) compliance for the time being. An official announcement has yet to be published, but below is the confirmation email sent to us from HMRC.
COVID-19 is creating extremely difficult times for all, and we are committed to helping in every way possible all those businesses facing unprecedented challenges. Therefore, we are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place.
Helping businesses get through the coronavirus crisis
The Government has announced that it will delay until 2021 the requirement for VAT registered businesses to have software in place that links VAT returns to the original invoice detailing the VAT charge. These ‘digital links’ were intended to replace the current process of logging in to your tax account and manually typing in VAT records and were due to come into force in April. You can read more about the all the requirements in our latest Making Tax Digital for VAT guide. It’s a small but important step in helping business owners to continue to focus their efforts on getting through the coronavirus pandemic without having to worry about a technicality regarding their financial administration.
Use this extension to get ready for MTD
That said, it must be recognised this is a delay only and it will be important to have MTD compliant software in place by April 2021. However, business owners now have time to consider the matter and take the correct steps without having to rush. If you have questions about any aspect of MTD, or wish to switch to our MTD-compliant online accountancy service, please get in touch, we’ll be pleased to help.