Making Tax Digital for VAT: Businesses With Complex Requirements

BWM Online Comments Off on Making Tax Digital for VAT: Businesses With Complex Requirements

HMRC has also begun to write to businesses affected by the deferment announced for ‘complex businesses’ back in October 2018.

The correspondence confirmed that around 3.5% of VAT-registered entities will brought into the MTD for VAT regime for periods beginning on and after 1 October 2019 (instead of for VAT periods beginning from 1 April 2019) due to HMRC’s systems being unable to cope with their particular circumstances.

  • Complex organisations included in the deferment include:
  • Trusts
  • Not-for-profit organisations that are not companies (including some charities)
  • VAT divisions
  • VAT groups,
  • Public sector entities required to provide additional information alongside their VAT return
  • Local authorities
  • Public corporations
  • Traders based overseas,
  • Those required to make payments on account
  • Annual accounting scheme users

However, the HMRC correspondence is less clear in regards to when affected organisations will have the chance to sign up for the pilot scheme.

“We estimate that our pilot for most VAT customers like you will start in early 2019,” reads the letter. “We will write to you with details of how to join.”

If you have any questions regarding MTD please contact Vicki Harper