HMRC recently announced that a number of businesses who would otherwise need to comply with the requirements of Making Tax Digital from 1 April 2019 would be deferred until 1 October 2019.
More information regarding which businesses are deferred can be found here.
HMRC has since undertaken a detailed exercise to identify all customers that fall within this group, and will shortly start issuing letters to every customer affected. A copy of the letter that will be sent to these businesses is below for information.
The letter is a specific:
- direction under Regulation 25A SI 1995/2518 to continue using existing methods to file VAT returns for all periods starting before 1 October 2019 (unless businesses choose to join Making Tax Digital for VAT before then)
- notification of exemption under Regulation 32B SI 2018/261 from the requirement to keep an electronic account (digital VAT records)
Any business that has a taxable turnover of, or above, the UK registration VAT threshold (currently £85,000) and does not receive the letter below (and who does not otherwise qualify for exemption) must comply with MTD from 1 April 2019. If you think that you or your client should qualify for the deferral, but do not receive one of these letters by the end of December, you should contact HMRC on the VAT Helpline - 0300 200 3700.
Anna Thomas & Clare Sheehan
Deputy Directors, Making Tax Digital for Business