Call for businesses to act now on Making Tax Digital for VAT 5 July

Jul 05, 2019

Chartered Accountants Ireland has cautioned VAT registered businesses with taxable turnover over £85,000 that soon their quarterly VAT returns must meet HMRC’s ‘Making Tax Digital’ requirements, unless they have an exemption or deferral.

Local businesses are being advised to take action now to avoid penalties or surcharges if they get their VAT calculation wrong or file late for the quarter ended 30 June 2019, and future quarters.

Alan Gourley, Chairman of Chartered Accountants Ireland’s NI Tax Committee said: “It might feel like holiday time but it’s now time for businesses to check whether and when they are required sign up for Making Tax Digital and if required, get ready to file their VAT returns using software that can talk to HMRC’s systems.

“Businesses who haven’t already signed up may need to take action now as registration with HMRC can take up to seven working days. HMRC are also telling businesses that they should wait to receive email confirmation they’ve signed up before filing their first Making Tax Digital VAT return; this can take up to 72 hours to arrive.

“The message to business is clear: check the Making Tax Digital deadlines for your business and be sure to sign up with HMRC in good time.”

Richard Gillan, Chairman of Chartered Accountants Ulster Society commented: “What this all means is that businesses should not wait until the end of July to take action as decisions may need to be made about which Making Tax Digital approved software to use. 

“Businesses should also not rely on their Chartered Accountant being able to sign them up at the last minute if they wait until the end of the month. This runs the risk of issues with registration and new systems which can happen the first time a business is faced with a change of this type.

“Talk to your accountant now before it’s too late about the steps you need to take to be Making Tax Digital compliant.”