The VAT time­line from HM Rev­enue & Cus­toms

Campbeltown Courier - - MONEY MATTERS -

The count­down is on

In Oc­to­ber this year the first VAT-reg­is­tered busi­nesses in the UK be­gan to use the sys­tem in a pi­lot scheme and pri­vate test­ing with part­ner­ships and those cus­tomers who trade with the EU.

The ex­ist­ing on­line VAT por­tal will close to some busi­nesses from April and VAT re­turns must in­stead be sub­mit­ted to HMRC us­ing recog­nised MTD soft­ware. From this point busi­nesses must record their VAT trans­ac­tions and re­turns dig­i­tally us­ing this type of soft­ware.

For the rest of the UK’s VAT-reg­is­tered busi­nesses the time line is as fol­lows

Early 2019: Opens to other sole traders and com­pa­nies who are not up to date with their VAT, users of the Flat Rate Scheme and busi­nesses newly reg­is­tered for VAT that have not pre­vi­ously sub­mit­ted a VAT re­turn.

Spring 2019: Pi­lot open for Mak­ing Tax Dig­i­tal cus­tomers that have been de­ferred.

April 2019 Mak­ing Tax Dig­i­tal be­comes manda­tory for all cus­tomers, ex­cept those that have been de­ferred.

Oc­to­ber 2019: Mak­ing Tax Dig­i­tal manda­tory for cus­tomers that have been de­ferred.

The six-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. The de­fer­ral will ap­ply to around 3.5 per cent of VAT reg­is­tered op­er­a­tions.

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