HMRC delays Making Tax Digital for large and complex businesses
HMRC have reacted to Making Tax Digital concerns from businesses with more complex VAT issues. They have deferred the VAT scheme’s start date to 1 October 2019 for some businesses.
The deferral will apply to around 3.5% of mandated customers.
The 6-month deferral applies to customers who fall into one of the following categories:
- ‘Not for profit’ organisations that are not set up as a company
- VAT divisions
- VAT groups
- Those public sector entities required to provide additional information on their VAT return (Government departments, NHS Trusts)
- Local authorities
- Public corporations
- Traders based overseas
- Those required to make payments on account and annual accounting scheme users.
Charitable companies will still have to comply by April 2019. It is estimated that just under 21,000 of roughly 38,000 VAT-registered charities in England and Wales are incorporated. There will be a push from interested parties to extend the effective date to all charities.
The full timetable is available on HMRC’s website.