Making Tax Digital VAT trial delay

Jul 30, 2018

A critical element of the Making Tax Digital (MTD) trial is the availability of MTD compliant software.  HMRC has now published details of software suppliers which having met its requirements for MTD for VAT, ahead of the mandatory deadline for online filing next April. However, disappointingly, it would seem that the public MTD VAT trial for businesses which was expected to start later in the summer will not now start until later this year.

According to HMRC’s latest update, more than 130 software suppliers have told HMRC that they are interested in providing software for MTD for VAT, of which over 35 have said they will have software ready during the first phase of the pilot, which involves small numbers of invited businesses and agents. 

See the list of suppliers who are listed as having both tested their products in HMRC’s test environment and have demonstrated a prototype of their software to HMRC. For the latest developments in MTD, check out the Institute’s newly launched MTD hub.

A stakeholder communications pack which offers guidance about the requirements of MTD for VAT has recently been published. HMRC says the communication pack provides information for firms, agents and others, who can use the contents to inform their own communications activity and key messages for their clients, customers or members. HMRC have also published its VAT Notice on MTD.

As well as explaining the background to MTD, it includes details of the pilots and encourages stakeholders to get involved in these, and to ensure that they and their clients are aware of new digital requirements.

If you or your practice is taking part in either or both of the current MTD trials for VAT and income tax, we’d like to hear about your experiences so far. Please contact Leontia Doran in the Institute.

HMRC also says it will provide more detailed guidance about the operation of MTD for VAT after the launch of the public service later this year.

The pilot for MTD for Income Tax was launched on a voluntary basis in April 2018. Businesses can sign up if they are a sole trader with income from one business and/or are landlords (except those with furnished holiday lettings). Currently there are four approved suppliers on HMRC’s list for MTD for Income Tax.