This update brings news of Making Tax Digital (“MTD”) for VAT and specifically HMRC communications ahead of the closure of the online VAT portal from 1 November. An update on the MTD for income tax trial is also provided.

MTD for VAT

As planned, the online VAT portal for submitting VAT returns is due to close from 1 November 2022 to ensure those required to sign up to MTD for VAT do so.

Earlier this month, HMRC issued letters to those still not signed up. This is to be followed up later this month with direct emails to taxpayers. An email will also be sent to appointed agents from the beginning of November setting out information on what happens next and how to support clients from 1 November.

Last week HMRC issued a Press Release highlighting the closure of the online VAT portal from 1 November and the requirement to sign up to MTD for VAT.

MTD for income tax

MTD for income tax is due to commence from 1 April 2024. At present, the pilot remains at Stage 1 (handholding and entry route via software developers only) while some technical issues are reviewed. There are currently 97 participants in the pilot with participation limited to those with an accounting period ending 5 April.

Chartered Accountants Ireland and the other Professional Bodies have expressed their concerns to HMRC about MTD for income tax and will continue to do so.