MTD for VAT public pilot goes live

Brought to you by BTCSoftware

HMRC has announced that the Making Tax Digital (MTD) for VAT pilot has now moved into its public beta phase.

At BTCSoftware we have already worked with many accountancy practices on the private beta, to help prepare for MTD and successfully submit VAT returns. Now, HMRC has announced that the MTD beta programme is now public, which means that eligible businesses with MTD compliant software (like BTCHub) can now join the pilot.

Eligibility criteria for the public pilot

Approximately 600,000 of the 1.1m businesses that are required to comply with the MTD for VAT regulations from 1st April 2019 (those with a taxable turnover above £85,000) are now eligible to join the public pilot.

Businesses who pay their VAT by direct debit cannot sign up during the 15 days leading up to the submission date. Besides, the following businesses and organisations cannot join the pilot yet:

  • Trusts or charities
  • Those part of a VAT group or VAT division
  • Those who trade with the EU
  • Those based overseas
  • Partnerships
  • Those who submit annual returns
  • Those who make VAT payments on account
  • Those who use the VAT Flat Rate Scheme
  • Businesses newly registered for VAT that have not yet submitted a VAT return via their VAT online account
  • Those who have incurred a default surcharge in the last 24 months

Deferred MTD mandation for complex VAT arrangements

HMRC has also announced a deferred MTD for VAT mandation date some businesses with more complex VAT arrangements. This will affect approximately 3.5% of VAT-registered entities, including:

  • Trusts
  • VAT divisions
  • VAT groups
  • Local authorities
  • Public corporations
  • Traders based overseas

Additionally, the deferred mandation also affects not-for-profit organisations that are not companies (including some charities), public sector entities required to provide additional information alongside their VAT return (such as government departments and NHS Trusts) and those required to make payments on account and annual returns.

Additional guidance

HMRC has also published the following MTD for VAT guidance:

Do you have any questions? We are here to help. Contact our sales team now on 0345 241 5030.