The latest on Making Tax Digital, 28 January 2019

Jan 28, 2019

HMRC have now opened up the Making Tax Digital (“MTD”) for VAT pilot to all businesses that will be mandated from April 2019 (i.e. the first VAT accounting period starting on or after 1 April 2019). VAT Notice 700/22: Making Tax Digital for VAT  has also been updated.

The pilot has therefore now been opened up to VAT groups to allow them to start testing the service.

According to HMRC, the pilot is progressing well. Over 3,500 businesses have already joined and there has been a dramatic increase in daily take-up from around 10-20 a day when the pilot first opened, to well over 100 a day currently, with the number of daily sign-ups continuing to grow.  HMRC will continue to provide updates as the pilot continues.

HMRC wants as many eligible businesses as possible to join the pilot ahead of the mandation of the service in April (although for the majority who file quarterly, their first return won’t be due until 7 August 2019 at the earliest). HMRC are saying that increased pilot participation will allow more businesses to get used to the service before they are mandated to use it as well as giving assurance that the service works for a range of different taxpayer types. It will also give HMRC the confidence that taxpayer’s experience of the MTD service, and the support in place around it, matches expectations.

Further details can be found in the updated guidance for businesses, updated guidance for agents and the stakeholder partner packs on GOV.UK.