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MTD for VAT : Partnerships & Annual Accounting

Commencement date for more complex entities

As I see it -

ANNUAL ACCOUNTING : A client with a VAT Annual Accounting scheme to 31st January each year will only be required to maintain records digitally as from 1st February 2020 as that will be the commencement of the first VAT period after 1st October 2019. Presumably Returns for the year to 31st January 2019 and 31st January 2020 can be submitted through the Government Gateway as usual.

PARTNERSHIPS : I have seen conflicting lists of what a more complex entity is, but I believe Partnerships will come into this category and thus digital records will only be required for the first VAT period commencing from 1st October 2019. Up until then VAT Returns can be made as usual through the Governmement Gateway.

Is this the correct interpretation?

 

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09th Nov 2018 11:50

I'm thinking along those lines too, Tornado

There's a couple of useful links here;

https://www.accountingweb.co.uk/tax/hmrc-policy/mtd-for-small-vat-client...

https://www.icaew.com/technical/tax/making-tax-digital

My personal opinions are-

One of the ICAEW's fact-sheets begins;

"Making Tax Digital (MTD) is the most fundamental change to the administration of the tax system for at least 20 years".

And, given that significance, HMRC hasn't, as far as I'm aware, made a public announcement to its "customers"?

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09th Nov 2018 12:11

Yes - already picked up on that and I'm in the process of switching to Annual Accounting for a couple of June year ends - principally so that I don't have to use two separate systems for the year to June 2018.

It means MTD starts for them on 1st July 2020.

I haven't investigated partnerships as I only have a voluntary registered partnership, unlikely to grow to mandatory registration.

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By jcace
09th Nov 2018 13:15

Per HMRC:
"The 6-month deferral applies to customers who fall into one of the following categories: trusts, ‘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."
I don't see any mention of partnerships in there and see no reason why a partnership should be included per se.

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to jcace
09th Nov 2018 13:22

Oh dear - I don't have any clients who are HMRC's "customers". I only have "taxpayers".

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