12 month extension to the Making Tax Digital (“MTD”) soft landing period expected to be announced

It is understood that HMRC are due to announce a 12 month extension to the Making Tax Digital ‘Soft Landing’ period to 1 April 2021 due to COVID-19.

We are awaiting a formal announcement but HMRC have been contacting some key stakeholders with the message below:

“We understand that the impact of COVID-19 is creating extremely difficult times for all, and we are committed to helping in every way possible all those businesses facing unprecedented challenges.

Therefore, we are providing all MTD businesses with more time to put in place digital links between all parts of their functional compatible software. This means that all businesses now have until their first VAT return period starting on or after 1 April 2021 to put digital links in place.”

The use of ‘cut and paste’ or ‘copy and paste’ does not constitute a digital link – except during the soft landing period.

The end of the soft landing period was due to be 1 April 2020 (or 01 October 2020 for deferred businesses), so this is welcome news as many businesses were struggling with getting digital links in place (and was possibly something HMRC were already considering given the concerns raised more generally around MTD).

We will provide further updates when we have an official announcement from HMRC.

Contact us

If you have any further questions, please contact us at advice@taitwalker.co.uk.