Making Tax Digital deferral ends and update for GIANT taxpayers

Oct 14, 2019


Readers are reminded that the deferral of MTD for VAT for some taxpayers to 1 October 2019 has now ended. HMRC have also issued the below email which is relevant to VAT GIANT taxpayers.

“As you will know, in June we wrote to the 600 or so customers who are required to submit additional information with their VAT return (the VAT 21 form) and do so using the bespoke ‘GIANT’ system to inform them that we would be extending their MTD deferral period.  We told them we would write to them again with more information about timings for when they would be required to join MTD.  We are now writing to those customers to tell them that they will not be required to join MTD before April 2022. This will enable HMRC to take into account the outcome of the HM Treasury review into the VAT refund rules for central government, which will cover the future reporting requirements for GIANT customers and could lead to changes to those rules. GIANT customers should continue to submit their VAT returns as they do now. 

All other elements of the roll-out of the VAT service are continuing as planned. MTD was mandated for VAT for the majority of customers for VAT periods stating on or after 1 April and will be mandated for deferred customers who do not use the GIANT service for periods starting on or after 1 October.”  

It is important that businesses sign up for MTD at the right time. Readers are reminded that businesses which must submit VAT returns under the MTD for VAT rules must sign up to the service. This sign-up can be done by the business itself or its agent. If a business is not already signed up, it must wait at least 24 hours after submitting its final non-MTD VAT return before signing up.

If payment of VAT is made by direct debit, businesses should allow five working days after the submission deadline for the final non-MTD for VAT return before signing up. Where payment is made by direct debit the business must sign up at least 7 working days before the first MTD for VAT return is filed.

Businesses are advised not to wait until the last minute to sign up in order to avoid issues with registration and new systems which can happen the first time a business is faced with a change of this type. Businesses must also decide on a suitable software package to use.

Businesses should also ensure that they receive email confirmation from HMRC that they have signed up before they file their first MTD for VAT return; HMRC are advising that this can take up to 72 hours to arrive.