HMRC have announced another important update regarding Making Tax Digital.
To help businesses meet their digital link requirements they have already allowed a 1-year soft-landing period from their original mandation date (VAT period starting on or after 1 April 2019 or 1 October 2019 for deferred businesses).
HMRC have now opened a process for businesses to apply for additional time if needed, to put digital links in place in order to comply with the requirements of MTD. This additional time will be provided for businesses with complex or legacy IT systems, who are unable to comply with MTD digital links requirements by the end of the initial soft-landing period.
Businesses need to ensure that by the end of their soft-landing period their systems are digitally linked where any data is transferred or exchanged.
Some businesses, with complex or legacy IT systems, may require a longer period to put digital links in place across their MTD software to meet their legal MTD for VAT requirements.
Therefore, they have opened a process for customers to apply for additional time. The criteria for making an application and how to apply are set out in the VAT Notice 700/22, section 188.8.131.52. Applications must be received by HMRC by the end of a business’ soft-landing period.
If you have any questions or concerns about MTD, our MTD Guru Ruth Corkin is here to help.