Have you been waiting for the soft-landing period to expire before worrying about your MTD for VAT software? VAT registered businesses in the UK with taxable turnover above £85,000 – are due to come out of soft landing effective from their first VAT return period starting on or after April 1st 2020.
HMRC have allowed this period of time, the “soft landing period” for businesses to have in place digital links between all parts of their functional compatible software.
For the first mandatory year since 1st April 2019 some businesses were not required to have digital links between software programs.
This means Making Tax Digital rules will apply to you from a:
- VAT period starting on or after 1 April 2019 – you will have until your first VAT return period starting on or after 1 April 2020 to put digital links in place
- VAT period starting on or after 1 October 2019 – you will have until your first VAT return period starting on or after 1 October 2020 to put digital links in place
To make these reporting changes as smooth and painless as possible, and to avoid any penalties arising as HMRC are acting now.
For further information and guidance, please contact your usual Whiting and Partners representative or call your local office to speak to our knowledgeable team of professionals.