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VAT MTD

VAT MTD has deadline been moved to 31.03.21

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Help please. As a small practioner doing VAT returns for two clients over 85K and one due to retire I had put off bitting the bullet. I was/am going for linking software but needed to update my excel to do that.  When in late March when trappred at home I read MTD for VAT postponed I beieved it. And have not purchased the linking software let alone worked out how to use it. Letter to client re VAT says must submit under MTD.  Has it been postponed?

 

 

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By jwgrogan
06th Jul 2020 12:03

MTD for VAT has been required for eligible businesses since 1/4/19. It's only the requirement for digital links that was postponed from 3/20 to 3/21.

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By Wanderer
06th Jul 2020 12:05

Think you have misinterpreted what's happened.

MTD is already in play, it's only the 'soft landing period' which has been extended.

https://www.gov.uk/government/publications/vat-notice-70022-making-tax-d...

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By CJaneH
06th Jul 2020 12:18

Agreed that it is the soft landing has been extended.

So does this mean I can submit VAT return for June 20 quarter on old system?

Records are on excel but no linking software yet purchased?

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Replying to CJaneH:
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By Wanderer
06th Jul 2020 12:29

CJaneH wrote:

So does this mean I can submit VAT return for June 20 quarter on old system?

No. And you probably should have not been using the old system for the last year.
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By AWeb72
06th Jul 2020 12:28

The answers above already tell you that submitting under MTD is mandatory and no you cannot submit under the old system. You should have been submitting under MTD since last April.
I'm sorry, but this is bread and butter knowledge and a bare minimum of what somebody in practice should know as they are responsible for clients.
And the mods wonder why certain answers are given.......

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By CJaneH
06th Jul 2020 12:41

My question was not should I use the old system, but can I. Please note I can find on line the following:

'However from 6th April this year ,this soft landing period was due to come to an end. The latest announcement from HMRC in response to COVID-19 pandemic means that businesses now have until their first VAT return period starting after 1st April 2021 to put the necessary digital links in place and comply with MTD rules fully.

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Replying to CJaneH:
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By AWeb72
06th Jul 2020 12:45

YES that delay is for using digital links. Since last April you could submit under MTD using copy and paste instead of links.
You should still have been using MTD and that is why your client got the letter.

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Oaklea
By Chris.Mann
06th Jul 2020 13:33

This https://www.gov.uk/government/publications/making-tax-digital/overview-o... might be useful, to clarify what's been said, already.

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By ireallyshouldknowthisbut
06th Jul 2020 14:17

As an fairly unenthusiastic adopter of MTD (to say the least) if I can tell you that its really aint that hard to use the new system.

Plenty of bridging software out there. You don't need to change your bookkeeping.

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By CJaneH
06th Jul 2020 15:06

Thanks for the support. As I was on Excel Office 97 I do have to change a bit.

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By SteveHa
06th Jul 2020 15:46

Yes, you are mistaken.

But I am more impressed that you have two clients over 85,000 years old, and only one of them is ready to retire.

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By petersaxton
24th Jul 2020 16:09

Although I agree the OP should know better, I do think HMRC are very bad in their wording. They should have made it a lot clearer.

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By petersaxton
24th Jul 2020 16:42

IRIS blog on this site says:

"The programme will be extended to:

taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually from April 2023
all VAT registered businesses with turnover below the VAT threshold (£85,000) from April 2022"

What about non-VAT registered companies below the VAT threshold?

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Replying to petersaxton:
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By Matrix
24th Jul 2020 16:58

On the second bullet aren’t they missing the part which says “for their VAT obligations“.

There is nothing for corporation tax yet, this is subject to consultation per the briefing.

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