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MTD digital link rules delayed by COVID-19

With just two days to go, HMRC announced a one-year delay to its enforcement of rules specifying the digital transmission of MTD for VAT data.

31st Mar 2020
Editor in Chief (interim) AccountingWEB
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With just two days to go, HMRC announced a one-year delay to its enforcement of rules specifying the digital transmission of transaction data through the Making Tax Digital (MTD) for VAT return filing process.

In a letter to professional bodies and software developers on Monday, the tax department explained, “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.

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Replies (8)

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By ireallyshouldknowthisbut
31st Mar 2020 16:38

I guess when there are some proper projects that actually matter in the real economy, pointless "busy work" like this takes a huge back step.

Thanks (3)
Jennifer Adams
By Jennifer Adams
31st Mar 2020 17:14

Fine... most of us submit online anyway.

But may I put a small hint of an idea forward to the government..as a 'thank you' to all the small businesses that are taking the brunt of the corona virus (or rather those that actually stay in business)... dare we hope for a delay of say 5 years until the full MTD is implemented?

Or better still.. just forget all about it as these next few years will be austerity and MTD is going to cost those SME's a lot.

Thanks (6)
Replying to Jennifer Adams:
By GHarr497688
31st Mar 2020 20:27

Its about time we all stood up to HMRC and said "No". Coronavirus has shown Government from all sides are clueless.

Thanks (3)
Replying to Jennifer Adams:
By Duggimon
01st Apr 2020 08:35

I would be surprised if the government working as fast as it could was able to manage anything less than 5 years.

They haven't got MTD for VAT working yet and I would be surprised if that progressed much in anything less than two years. The system, as it was originally announced, was to facilitate submission of all of the underlying VAT records, which is does not do and is unable to handle.

The digital link restriction was an incredibly minor restriction and this pointless pushing back of the deadline for it is purely a measure to ensure HMRC don't need to try to enforce it yet because they lack the resources to do so.

Thanks (2)
By Duggimon
01st Apr 2020 08:31

Well I'm feeling quite smug now, glad I waited until two days before the final final deadline before doing anything about getting my clients ready for this, now we can all reap the benefits.

Wait, no, this is a pointless announcement.

Thanks (3)
By North East Accountant
01st Apr 2020 12:54

A help to some i'm sure.

Now let's have a delay to the new CGT 30 day reporting which will create more chaos, at an extremely busy time.

Thanks (1)
By seitler
01st Apr 2020 22:47

The reality is that MTD for Vat was really something and nothing - quite easy to accommodate especially with bridging software. Having to submit 4 times a year is going to place an impossible burden on small businesses

Thanks (1)
By Peter Bromiley
16th Apr 2020 15:15

I'm confused. Will we still be able to use bridging software like Iris VAT filer after April 2021 - or not?

And I still don't see the point of MTD unless we end up paying Corporation Tax and Income Tax quarterly. Otherwise it's much ado about nothing useful.

Thanks (0)