HMRC extends Making Tax Digital ‘digital links’ deadline to 2021
VAT News Updates
1st April 2020: To ease the burden on businesses during the COVID-19 crisis, HMRC has confirmed that it is allowing more time for participants in MTD for VAT to implement digital links within their recordkeeping systems.
The April 2020 commencement date for Making Tax Digital transition period to digital linking has now been extended until April 2021 in light of the coronavirus pandemic.
Below is an extract from the HMRC communication:
We are committed to helping in every way possible all 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.
HMRC has confirmed that it is allowing more time for participants in Making Tax Digital for VAT to implement digital links within their recordkeeping systems. Under the Making Tax Digital for VAT guidelines, digital record-keeping under MTD is the requirement to maintain financial information digitally so that summary figures can be reported to HMRC quarterly. If digital records are up to date, the software will be able to collate and prepare VAT returns automatically, meaning the business will only need to review the return and declare it is correct, before submission to HMRC.
What’s next for Making Tax Digital?
Even with this extension, it is still reported that 1 in 10 businesses are not prepared, and have missed the MTD deadline and filed non-compliantly. We’re keen to keep you updated on everything going on with MTD. Check out our short Making Tax Digital webinar hosted by our Senior VAT Manager (and all-round VAT expert!) Lisa Dowling below to discover the latest deadlines, penalties and how MTD works.
Taxback International is helping companies like yours!
Taxback International have developed our own API to communicate through Making Tax Digital, which has been tested and approved by the HMRC. This means we can help ensure complete compliance for your UK domestic VAT reclaim and MTD requirements.
Contact us today to learn more: Email: email@example.com Tel :+44 7881 385873
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