At our recent webinar held by Crowe’s VAT partners Robert Warne and Robert Marchant to over 600
people in organisations of varying sizes, we discussed what they need to do to prepare for the significant changes required to submit VAT returns from during 2019.
Our webinar audience was asked about their readiness
for Making Tax Digital to comply with the new rules.
Some organisations with more complex VAT registration arrangements will benefit from a deferral of the implementation date to 1 October 2019.
HMRC’s guidance says that the deferral will apply to the following entities.
Pubic sector entities required to provide
additional information on their VAT return
(government departments, NHS Trusts)
For those organisations not on this list, the planned implementation of MTD for VAT remains effective from 1 April 2019.
Of particular significance is the deferral for those who are required to make payments on account and those organisations that are members of a VAT group. For organisations made-up of multiple entities it could lead to a phased implementation where entities A, B and C who are members of a common VAT group benefit from deferral but entity D, which is separately VAT registered, will be subject to the MTD for VAT requirements from 1 April 2019.
This deferral will be welcome news to a number of attendees of our recent MTD for VAT webinar, who indicated that the complexity of their VAT arrangements meant that they felt there was insufficient time to prepare for the changes. However, it does add another layer of complexity in needing to assess whether or not a particular VAT registration qualifies for the deferral.
We are working closely with a number of organisations to help them review their VAT compliance processes and to identify the changes that are compulsory for 1 April or 1 October 2019.
For further information, please speak to your usual Crowe contact or [email protected]
If you are registered for VAT because you have, at some point in the past, exceeded the £85,000 taxable turnover threshold, then yes you will fall within MTD.
You must have a digital record of:
For each supply you make or receive you must record the: